An algorithm for solving bond pricing problem

Solving Ordinary Differential Equation of Higher Order by Adomian Decomposition Method

“…Adomian Decomposition Method (ADM) is a new and accomplished method for solving linear and non-linear ordinary differential equation [1,2,3]. In recent years, ADM has been used in a wide range for solving linear and non-linear equation in applied sciences for as in [4,5]. This method attracted the attention of many scientists and researchers.…”

About a Certain “Anomaly” in the Pricing of Debt Securities

“…It should be noted that as for the latter, what we observe is a sort of feedback: the term structure of interest rates is determined based on the prices of debt securities listed on the free market; on the other hand, it is the basis for pricing of such securities, which is particularly true for their new issuance. For this reason, bond pricing relies on highly advanced mathematical tools, such as non-linear approach methods [Deeba et al 2002], partial differential equations [Zui-Cha et al 2010], integration into trajectories known from the field of physics [Zanga et al 2017], and Green's function [Pooe et al 2004]. In the light of the aforementioned research, this paper relies on both elementary and deterministic methods.…”

Options Pricing in Jump Diffusion Markets during Financial Crisis

“…Several ideas have been suggested to overcome this shortcoming of the Black-Scholes model. In fact, new option pricing models have been developed based on empirical observations (see for instance [5], [21], [24], [7] and [18]). For example, in [9], the authors investigate the calibration properties of several multi-factor stochastic volatility models using a data set of vanilla options.…”