In this course, you will learn about time preference and the economic components of nominal interest rates. We will demonstrate the quantitative methods used to value products with multiple cash flows over longer time periods. Calculation of internal rate of return (IRR), present value (PV) and future value (FV) will also be shown using single period and annuity examples.
LO1: IntroductionLO2: Components of the Nominal Interest RateLO3: Valuation of Time PreferenceLO4: AnnuitiesLO5: U.S. Treasury Bill Calculation & the Bond Equivalent Yield