Unformatted text preview: Valuation of Money Market
Securities - For money market securities making no
interest payments. the value reﬂects the
present value of a future lump-sum payment
r:The discount rate ie the required rate of return
by inveetore Valuation of Money Market Securities (cont’d) - Explaining money market price movement:
1 The prtoe at e mum-plying money m-tret _
eeou-ity ll: '
P," = For I(t+ k)" Valuation of Money Market
Securities (cont’d) I lndloetonoffuturernoneymerketeeouﬁtypneee
r. WMBWWIw-bmh mwmwhmmm
mhmmm CW .130? .Renlula .mm .mm - Minimum ...
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- Spring '10