Interest Rate Basics: Financial Maths I
Interest rates sit at the intersection of finance, economics and politics. Even a slight change in interest rates can have a ripple effect with consequences felt across multiple financial products. This pathway will give you the fundamentals you need to monitor and respond to changes in interest rates.
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9 videos • 49 minutes
Interest Rate Basics
In this video, Abdulla covers the basic interest rates we are likely to encounter and uses a spreadsheet example.
Abdulla Javeri • 07:58
Interest Rate Basics Exercises
Following Abdulla's video on interest rate fundamentals and simple versus compound interest, this video aims to consolidate that knowledge by working through six simple exercises.
Abdulla Javeri • 08:44
Simple vs Compound Interest
Compounding is one of the most powerful concepts in finance. Abdulla compares simple versus compound interest and the importance of understanding the difference.
Abdulla Javeri • 05:28
Calculating Accrued Interest on a Bond
Abdulla explains the fundamental concepts: day count conventions, accruals and accrued interest, as applied in bond markets.
Abdulla Javeri • 06:13
Present Value Calculations (Bonds)
In this video, Abdulla outlines the formula used in bond markets discounted for multiple periods.
Abdulla Javeri • 04:04
Calculating Accrued Interest in the Money Markets
Abdulla explains how interest is actually calculated in the money markets using day count conventions and interest accrual: the two major global money market conventions.
Abdulla Javeri • 05:27
Present Value Calculations (Money Markets)
In this video, Abdulla covers single period discounting applicable to money markets.
Abdulla Javeri • 03:55
Discount Factors (Bonds)
Discount factors are crucial in valuing cash flows, financial assets including derivatives on a consistent and accurate basis. In this video, Abdulla explains how they are applied using bond markets as an example.
Abdulla Javeri • 04:19
Discount Factors (Money Markets)
In this video, Abdulla explains discount factors as they specifically apply to money markets.
Abdulla Javeri • 03:46
