Relationship between the discount and compound processes

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Reference no: EM131991738

1. What is the "time value money" ?. Why is it so important?.

2. Explain the relationship between the discount and compound processes.

3. What is an annuity? Provide examples of annuities and distinguish between an annuity and a perpetuity.

4. Explain the effect of inflation on the rate of return.

5. Explain the term "term structure of interest rates".

6. What is the meaning of "beta"? How is it used to calculate "k", the rate of return required by the investor ?.

Reference no: EM131991738

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