Slide 1The Time Value of Money Chapter 5 Slide 2 LEARNING OBJECTIVES 1. Explain the mechanics of compounding when invested. 2. Present value and future value. 3. Ordinary…

Slide 1Lecture 6 Exam in One week, will cover Chapters 1 and 2. Do Chapter 2 Self test. Slide 2 Review Review Problems 2.28, 2.30(b) (reviewed other problems, took the entire…

Slide 113.1 Compound Interest Simple interest – interest is paid only on the principal Compound interest – interest is paid on both principal and interest, compounded…

Slide 11 Project 2- Stock Option Pricing Mathematical Tools -Today we will learn Compound Interest Slide 2 2 Compounding Suppose that money left on deposit earns interest.…

Slide 1LEGOs Theory Continued… In learning about compound cash flows, we found ways to decompose and convert the cash flow pattern building blocks from one type to another,…

Slide 1Lecture 9 Slide 2 2 3 10 8.04 6.00 4.84 Slide 3 Maturity (years)YTM 13.0% 53.5% 103.8% 154.1% 204.3% 304.5% The Pure Term Structure or Pure Yield Curve are comprised…

Slide 11 On the significance of Sraffa's reswitching: some long-standing financial puzzles and their joint resolution Mike Osborne Sheffield Business School, Sheffield…

Slide 11 Investment Options: Cornelius Schoonees Business Development Actuary, Absolute Return Investments How to get downside protection in uncertain markets – without…

Slide 1Time Value of Money Chapter 23.5 -23.9 ChEn 4253 Terry A. Ring Slide 2 Examples of Time Value of Money Saving Account –Interest increases the amount with time Loan…

Slide 1Present and Future Value Translating cash flows forward and backward through time Slide 2 Future Value Money invested earns interest and interest reinvested earns…