TAILIEUCHUNG - Lecture Money, banking, and financial markets (3/e): Chapter 4 - Stephen G. Cecchetti, Kermit L. Schoenholtz

Chapter 4 - Future value, present value, and interest rates. After studying this chapter you will be able to understand: The value of a payment depends on when it is made, present value can be used to value any stream of future payments, the real interest rate is the nominal interest rate minus expected inflation. It expresses the interest rate in terms of purchasing power rather than current dollars. | Chapter Four 4- A Brief History of Lending Lenders have been despised throughout history. Credit is so basic that we find evidence of loans going back five thousand years. It is hard to imagine an economy without it. Yet, people still take a dim view of lenders because they charge interest. 4- Introduction Credit is one of the critical mechanisms we have for allocating resources. Although interest has historically been unpopular, this comes from the failure to appreciate the opportunity cost of lending. Interest rates Link the present to the future. Tell the future reward for lending today. Tell the cost of borrowing now and repaying later. 4- Valuing Monetary Payments Now and in the Future We must learn how to calculate and compare rates on different financial instruments. We need a set of tools: Future value Present value How and why is the promise to make a payment on one date more or less valuable than the promise to make it on a different date? 4-

• Ngân hàng - Tín dụng
• Financial markets
• Financial system
• Financial institutions
• Central banks
• Future value
• Present value
• Lecture Financial markets
• Thị trường tài chính
• Financial futures markets
• Valuation of financial futures
• Interest rate futures
• Lecture Financial markets and institutions
• Financial institutions markets
• Capital markets
• Money markets
• Derivative securities markets
• Futures markets
• Option markets
• Swap markets
• Foreign exchange derivative markets
• Bank management
• Types of Financial Markets
• Securities traded
• Valuation of securities
• Money market yields
• Bond markets
• Municipal bonds
• Mortgage markets
• Primary mortgage market
• Stock markets
• Common stock
• Foreign exchange markets
• Foreign exchange
• Commercial banks
• Financial statements
• Risks at financial institutions
• Market risk
• Exchange rates
• Economics 252
• Efficient markets
• Excess volatility
• Efficient Markets Hypothesis
• Interest rate derivative markets
• Interest rate swaps
• Mortgage backed securities
• Globalization of mortgage markets
• Financial markets and institutions
• The financial system
• Interest rates change
• Financial markets efficient
• Term structure affect interest rates
• The stock market
• The mortgage markets
• The international financial system
• Financial regulation
• Interest rate fundamentals
• Interest rates
• Security valuation