Читать книгу The Investment Advisor Body of Knowledge + Test Bank - IMCA - Страница 26

Learning Objectives

■ Describe the concept of compounding and compute compound returns.

■ Discuss the concept of limited liability.

■ Graph log returns and discuss how logarithms are useful for charting times series that grow exponentially.

■ Explain continuously compounded returns and convert the nominal rate into an annualized rate.

■ Discuss the significance of discount factors.

■ Describe the concept of an infinite series and determine the present value of a perpetuity that pays a stated coupon payment annually.

■ Describe the concept of a finite series and determine the present value of a newly issued bond that matures at a time certain and pays a stated coupon payment annually.