Present Value Relations

Video Lectures

Present Value Relations I

Watch the video: Part I of Present Value Relations (1 hr 16 mins)

Description: This video lecture presents the definition of an asset as a sequence of current and future cash flows, and the implications of that definition. Valuation of cash flows is presented in the context of time, certainty, and the present value operator.

 

Present Value Relations II

Watch the video: Part II of Present Value Relations (1 hr 20 mins)

Description: This video lecture covers examples on calculating net present value, comparing perpetuities and annuities, and conventions for compounding.

 

Present Value Relations III

Watch the video: Part III of Present Value Relations (42 mins)

Description: This video lecture starts with a discussion of leverage ratio with an example from Lehman Brothers. The video lecture then continues to cover the last portion of present value relations, including inflation and how to calculate real and nominal rate of return.

Slides

Present Value Relations Slides 1–36 (PDF)

  • Video for Part I of Present Value Relations covers slides 1–16
  • Video for Part II of Present Value Relations covers slides 17–29
  • Video for Part III of Present Value Relations covers slides 30–36

 

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