金融市场3understand interest rate【荐】.pdf

金融市场3understand interest rate【荐】.pdf

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金融市场3understand interest rate【荐】.pdf

Part II Principles of Financial Markets uUNDERSTANDING INTEREST RATES Chapter 3 uBEHAVIOR OF INTEREST RATES Chapter 4 uTHE RISK AND TERM STRUCTURE OF INTEREST RATES Chapter 5 uTHE THEORY OF EFFICIENT CAPITAL MARKETS Chapter 6 3-1 School of Management in HUST The Time Value of MoneyThe Time Value of Money andand The Interest RateThe Interest Rate Which would you prefer -- $10,000 today or $10,000 in 5 years? Obviously, $10,000 today. You already recognize that there is TIME VALUE TO MONEY!! 3-2 School of Management in HUST Why TIME?Why TIME? Why is TIME such an important element in your decision? TIME allows you the opportunity to postpone consumption and earn INTEREST. 3-3 School of Management in HUST Why Compound Interest?Why Compound Interest? Future Value of a Single $1,000 Deposit ) s r 20000 a l l o 10% Simple D 15000 . Interest S U. 7% Compound ( 10000 e Interest u l 10% Compound a 5000 V e Interest r u 0 t u 1st Year 10th 20th 30th F Year Year Year Millionaire example of 3-4 c

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