Lecture Financial markets and institutions (4/e) – Chapter 3
Lecture Financial markets and institutions (4/e) – Chapter 3
Chapter 3 - Time value of money. After studying chapter 3, you should be able to: Understand what is meant by “the time value of money; understand the relationship between present and future value; describe how the interest rate can be used to adjust the value of cash flows – both forward and backward – to a single point in time;...