Foundations and Applications of the Time Value of Money

About The Authors.

Introduction.

Part 1: The Basics Of The Time Value Of Money.

Chapter 1: The Value Of Compounding.

Compounding.

Calculator And Spreadsheet Solutions.

Frequency Of Compounding.

Chapter 2: Don't Discount Discounting.

Discounting.

Discounting More Than On Future Value.

Determining The Number Of Compounding Periods.

Chapter 3: Cash Happens.

Valuing A Stream Of Future Cash Flows.

Valuing A Perpetuity.

Annuities.

Chapter 4: Yielding For Yields.

Annualized Rates Of Interest.

Determining The Unknown Interest Rate.

Rules.

Part 2: A Few Applications.

Chapter 5: Loans: To Amortize Or Not To Amortize.

Amortizing A Loan.

Interest Rates On Loans.

Determining The Number Of Periods.

Variations On The Theme.

Chapter 6: Saving To Spend.

Valuing A Deferred Annuity.

Annuities With Annuities.

A Bit Of Realism.

Chapter 7: Values Tied To Bonds.

Bond Basics.

Calculating The Yield To Maturity.

Issues.

Chapter 8: Taking Stock.

What's In A Value? The Basics Of Stock Valuation.

Returns On Stocks.

Chapter 9: A Capital Idea.

The Net Present Value.

The Profitability Index.

The Internal Rate Of Return.

Chapter 10: Fact Or Fiction.

Fact Or Fiction: It Pays To Get An MBA.

Fact Or Fiction: Leasing A Car Accosts Less Than Buying A Car.

Fact Or Fiction: Gold Has Always Been A Good Investment.

Appendices.

Appendix A: Using Financial Calculators.

Preparing The Calculator.

The Basics.

Financial Functions.

Tips.

Troubleshooting.

Appendix B: Using Spreadsheets For Financial Calculations.

The Basics.

Time Value Of Money Functions.

Cash Flow Functions.

Other Useful Functions For Financial Mathematics.

Appendix C: Formulas.

Appendix D: Glossary.

Appendix E: Solutions To End-Of-Chapter Problems.

Index.