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1 The term structure of interest rates Reading • Luenberger, Chapter 4 • Fabozzi, Chapters 7, 8, 41, 42 Goals • Understand the term structure of interest rates •…

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1. Interest Rates Chapter 4 2. Types of Rates Treasury rates LIBOR rates Repo rates 3. Measuring Interest Rates The compounding frequency used for an interest rate is the…

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1. Concepts of Value and ReturnCHAPTE R 2 Faculty: Ahamed Riaz 2. LEARNING OBJECTIVES Understand what gives money its time value. Explain the methods of calculating…

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Mathematics of finance and valuation A. Ostaszewski 2790043 2007 Undergraduate study in Economics, Management, Finance and the Social Sciences This guide was prepared for…

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BQOE III FUNDAMENTALS OF ACCOUNTING AND FINANCE Noor Asma Jamaludin Nor Asma Lode Junaidah Hanim Ahmad Azlan Zainol Abidin Amin Ali Norazita Marina Abd. Aziz Project Directors:…

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1. Present Value of Money 2. The One-Period Case: Future Value If you were to invest $10,000 at 5-percent interest for one year, your investment would grow to $10,500$500…

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1. CHAPTER 4 Net Present Value Published byLecturesheet.iiuc28a9.com 2. Chapter Outline 4.1 The One-Period Case 4.2 The Multiperiod Case 4.3 Compounding Periods 4.4 Simplifications…

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1. FINANCIAL MODELING 2. The materials in this book are intended for instructional and edu- cational purposes, to illustrate situations similar to those encoun- tered in…

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Slide 16.6 The Natural Base, e Slide 2 Natural Base, e The natural base, e, is used to estimate the ages of artifacts and to calculate interest that is compounded continuously.…

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Slide 15.3 Applications of Exponential Functions Objective: Create and use exponential models for a variety of exponential growth and decay application problems Slide 2 Compound…