How do you find the value of a bond and why do bond prices change? (Slide 6.8) What is a bond indenture and what are some of the important features? (Slide 6.30) How does inflation affect interest rates? ( What is the term structure of interes
What is a pure discount loan?
What is a good example of a pure discount loan? (Slide 5.72)
What is an amortized loan?
What is a good example of an amortized loan? (Slide 5.73)
Pure Discount Loans
Treasury bills are excellent examples o
Quick Quiz: Part 1
What is the difference between simple interest and compound interest?
Quick Quiz: Part 2
What is the relationship between present value and future value? (Slide 4.32)
Effects of Compounding
How do you standardize balance sheets and income statements?
Why is standardization useful? (Slide 3.4)
What are the major categories of ratios and how do you compute specific ratios within each category? (Slide 3.11) What are the major dete
What is the difference between book value and market value? (Slide 2.8)
Which should we use for decision making purposes?
What is the difference between accounting income and cash flow?
Which do we need to use when making decisions? (Slide
What are the four basic areas of finance? (
What are the three types of financial management decisions, and what questions are they designed to answer? (Slide 1.13) What are the three major forms of business organization? (Slide 1.