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 Javeri07:58

  • 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 Javeri08:44

  • 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 Javeri05:28

  • Calculating Accrued Interest on a Bond

    Abdulla explains the fundamental concepts: day count conventions, accruals and accrued interest, as applied in bond markets. 

    Abdulla Javeri06:13

  • Present Value Calculations (Bonds)

    In this video, Abdulla outlines the formula used in bond markets discounted for multiple periods. 

    Abdulla Javeri04:04

  • 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 Javeri05:27

  • Present Value Calculations (Money Markets)

    In this video, Abdulla covers single period discounting applicable to money markets.

    Abdulla Javeri03:55

  • 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 Javeri04:19

  • Discount Factors (Money Markets)

    In this video, Abdulla explains discount factors as they specifically apply to money markets.

    Abdulla Javeri03:46

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