Global Financial Management: Discounting and Present Value Techniques

Global Financial Management: Discounting and Present Value Techniques

Embark on a journey through the essential financial concepts of discounting and present value techniques. This guide is a cornerstone for understanding the mechanics of financial markets and a prerequisite for advanced topics like bond and stock valuation.

🔹 Objectives: Master skills from tracking loan balances to valuing perpetual bonds, and learn to differentiate between annual percentage rates and effective annual rates.

🔹 Future Value: Discover how to calculate the future value of investments over different time periods and interest rates.

🔹 Present Value: Learn to determine the current worth of future cash flows, an essential skill for comparing different financial liabilities.

🔹 Compounding Intervals: Understand the impact of various compounding intervals on loans and investments.

🔹 Effective Annual Rate: Explore how to calculate the true cost of loans with different compounding frequencies.

🔹 Annuities and Mortgages: Dive into the world of annuities and mortgages, understanding their present and future values.

🔹 Growing Perpetuities and Annuities: Extend your knowledge to scenarios where payments grow over time.

📥 To access this comprehensive guide:

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