Lec 3 Flashcards
1
Q
TVM when worth more
A
$100 today is worth more than $100 in one year’s time
2
Q
Nominal interest rate
A
rate payed per standard interval of time without considering compounding
3
Q
r/m
A
Periodic interest rate, like monthly rate if m = 12
4
Q
Continuous Compounding EIR
A
e^r - 1
5
Q
how many weeks in 6 months
A
26
6
Q
YTM > CPN rate vs < vs equal
A
7
Q
YTM
A
Nominal rate -> if coupon semi annual, find semi-annual rate and multiply by 2
8
Q
Draw out geometric series pv
A
9
Q
Draw out uniform gradient series pv
A
