The Time Value of Money in Finance
Free CFA Level I lesson in Quantitative Methods. 11 min read, ~1,604 words.
Bond PV = sum of discounted coupons + discounted face. Solving for the discount rate that matches price gives the implied yield (YTM). Gordon growth:. Rearrange: required return; implied growth. Cash flow additivity: two portfolios with identical future cash flows must cost the same today. This is the no-arbitrage condition...
Read the full lesson, free →
Worked examples, audio narration, and practice. No signup to read.
What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- time value of money in finance
Browse all free CFA Level I lessons or jump into free CFA Level I practice questions.