Present Value Calculations (Money Markets)

Present Value Calculations (Money Markets)

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

When using the formula for single-period discounting in money markets, the correct inputs are an appropriate nominal annual rate or yield and the correct accrual.

Key learning objectives:

  • What is the correct formula for calculating the PV of a future cash flow for money markets?

  • What are the critical inputs into the formula?

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Summary
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Expert
Abdulla Javeri

Abdulla Javeri

Abdulla’s career in the financial markets started in 1990 when he entered the trading floor of the London International Financial Futures Exchange, LIFFE, and qualified as a pit trader in equity and equity index options. In 1996, Abdulla became a trainer for regulatory qualifications and then for non-exam courses, primarily covering all major financial products.

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