Sunday, June 8th, 2008
A yield curve is a representation of what interest rates you could lock in today for investments over different periods. It's effectively a set of yields for securities of different maturities (typically cash rates at the short end, futures and then swaps at the longer maturities - see the ...
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Sunday, June 8th, 2008
One of the (many) aspects of the "Mathematical Constant" [tex]e[/tex] is that:
[tex]\lim_{x\to\infty} (1+\frac{1}{x})^x = e[/tex]
This property makes [tex]e[/tex] very useful for working on compounding interest problems. How so?
Let's start with the basic time value of money formula giving the relationship between the PV (present value) and FV (future value) given R (the ...
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