The Term Structure of Interest Rates: Expectations and Behavior Patterns

The "Bond Pricing Theory" by Burton G.

Malkiel is a groundbreaking book that revolutionizes the way we understand bond prices and their relationship with institutional practices.

This comprehensive overview covers the previous work in the field, reformulates the expectations theory to focus on bond prices, and extends it to incorporate transaction costs.

The author presents compelling evidence that traditional expectational theories do not account for institutional factors, leading to a partial-equilibrium model that takes these factors into consideration while allowing for flexibility in supply.

This book is a must-read for anyone interested in bond pricing and the role of institutions in shaping market outcomes.