Foundations and Applications of the Time Value of Money
Published on 31. July 2009
298 pages
978-0-470-52602-6 (ISBN)
Description
Comprehensive coverage of the time value of money
In this book, authors Pamela Peterson Drake and Frank Fabozzifully expand upon the type of time value of money (TVM) conceptsusually presented as part of overviews given in other generalfinance books. Various TVM concepts and theories are discussed,with the authors offering many examples throughout each chapterthat serve to reinforce the tools and techniques covered. Problemsand detailed solutions-demonstrated using two different financialcalculators, as well as Excel-are also provided at the end of eachchapter, while glossary terms are provided in an appendix tofamiliarize you with basic terms.
* Provides the basic foundations of the time value of money
* Covers issues ranging from an introduction of financialmathematics to calculating present/future values and understandingloan amortization
* Contains problem/solution sets throughout, so you can test yourknowledge of the topics discussed
Understanding the time value of money is essential, and thisreliable resource will help you gain a firm grasp of its manyaspects and its real-world applications.
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Pamela Peterson Drake | Frank J. Fabozzi
Foundations and Applications of the Time Value of Money
Book
09/2009
1st Edition
Wiley
€59.00
Shipment within 10-20 days
Persons
PAMELA PETERSON DRAKE, PHD, CFA, is the J. Gray Ferguson Professor of Finance and Department Head of Finance and Business Law at James Madison University. Prior to joining James Madison University, she was an associate dean and professor of finance at Florida Atlantic University, and, previous to that, a professor at Florida State University.
FRANK J. FABOZZI, PHD, CFA, CPA, is Professor in the Practice of Finance and Becton Fellow at the Yale School of Management, Editor of the Journal of Portfolio Management, and Associate Editor of the Journal of Structured Finance and the Journal of Fixed Income.
Content
Preface.
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 ACar.
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.
