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Interest Rates in Financial Analysis and Valuation

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Language :  English
This book provides a compendium of selected important topics covered in any finance course.
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Description
Preface
Content

This book provides a compendium of selected important topics covered in any finance course. The main subject on time value of money and its computational application are explained and demonstrated. This follows other subjects as cost of capital, capital budgeting and securities valuation that used time value factor in their computational analysis.

This pocket book is meant for anyone who is interested in the applications of finance, particularly business students. The applications in financial market and, to some extent, in banking are briefly discussed and shown in examples.

For students it complements the textbooks recommended by lecturers because it serves as an easy guide in financial mathematics and other selected topics in finance. These topics usually found in a course such as financial management or managerial finance at the diploma and undergraduate levels.

The pocket book also covers topics associated with interest rates in particular financial derivatives and securities valuation. There is also a topic on discounted cash flow analysis, which covers cash flow recognition and asset replacement analysis. Both financial mathematics and interest rate are two main elements involved in the computational aspect of these two financial analyses.

The pocket book provides several computational examples in each topic. At the end of each chapter there are exercises for students to work on to help them in understanding the mathematical process involved in each topic area.

The main idea is to help students and others get familiar with the computations.

Ahmad Nazri Wahidudin, Ph. D

  1. Single principal sum
    1. Simple Interest Rate
    2. Flat Rate
    3. Compound Interest Rate
  2. Multiple stream of cash flows
    1. Even Stream of Cash Flows
    2. Uneven Stream of Cash Flows
  3. The rates of return
    1. The Term Structure of Interest Rates and Theories
    2. Forecasting Interest Rates
    3. Interest Rates in Derivative Contracts
    4. Rates of Return
  4. Security valuation
    1. Valuation and Yields of Treasury Bills and Short-term Notes
    2. Bond Valuation
    3. Preference Share Valuation
    4. Ordinary Share Valuation
    5. Share and Portfolio Performance Measures
  5. Cost of capital
    1. Weighted Average Cost
    2. Cost of Debts
    3. Cost of Equity
  6. Capital budgeting
    1. Net Present Value
  7. Appendix
About the Author

Ahmad Nazri Wahidudin, Ph. D