Unit 3: Article Review Discussion

Article Search online for a current event or article that exemplifies and/or applies the chapters concept(s)

Click here for Learning Outcomes

ULO 1- Explain how the time value of money works and discuss why it is such an important concept in finance (CLO 2 and 4).

ULO 2- Identify the different types of annuities, calculate the present value and future value of both an ordinary annuity and an annuity due, and calculate the relevant annuity payments (CLO 4).

ULO 3- Explain the difference between nominal, periodic, and effective interest rates. An understanding of these concepts is necessary when comparing rates of returns on alternative investments (CLO 2 and 4).

ULO 4- List the various factors that influence the cost of money (CLO 2).

ULO 5- Discuss how market interest rates are affected by borrowers’ need for capital, expected inflation, different securities’ risks, and securities’ liquidity (CLO 2 and 3).

• ULO 6-  Explain what the yield curve is, what determines its shape, and how you can use the yield curve to help forecast future interest rates (CLO 2 and 4).