Please enable JavaScript.
Coggle requires JavaScript to display documents.
The time value of money, Norminal risk free rate - Coggle Diagram
The time value of money
Interest rate
Discount rate:
Opportunity cost
Required rate of return
Rate of return equation
Real risk free rate
Expected Infation
Risk premium
Risk premium
Default risk
Liquidity risk
Maturity risk
Interest
Simple interest
Compound interest
CF Caculation
FV
Anually : FV = PV + (1+r)^N
Periodly: FV = PV + (1+ r)^ (Nxm)
Continuosly: FV = PV x e ^(r x N)
PV
Annually: PV = FV/ (1+r)^N
Periodly: PV = FV/ (1+r)^(N x m)
Continuosly: PV = FV / e^(r x N)
Norminal risk free rate