Securities valuation is a textbook on valuing securities, which include equity, government securities, equity and bond options, corporate bonds, mortgage-backed securities, CMOs, and other securities. This book is written to enhance students' capability in applying this process to solve practical problems. Each chapter in this book begins with a problem in valuation, then formulates the problem, and finally provides the solution.The summarized specific models realted to the theory is also provided at the end of each chapter. The model is illustrated by a numerical example , which is implemented by an Excel model. To underscore the importance of the thinking process, after each model is presented a 'case study'. These cases deal with many practical important issues in day-today financial businesses. Many of them are drawn from the authors' work experience over the past twenty years.