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Banking Essentials - Part I
This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.
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Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.
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Tackling the Cost of Living Crisis
In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.
CSR and Sustainability in Financial Services
In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.
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Categories
Discover our Courses
Featured Pathways
More pathways
Banking Essentials - Part I
This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.
Greenwashing
Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.
More pathways
Ready to get started?
Plans & Membership
Find the right plan for you
Our Platform
Expert led content
+1,000 expert presented, on-demand video modules
Learning analytics
Keep track of learning progress with our comprehensive data
Interactive learning
Engage with our video hotspots and knowledge check-ins
Testing & certification
Gain CPD / CPE credits and professional certification
Managed learning
Build, scale and manage your organisation’s learning
Integrations
Connect Finance Unlocked to your current platform
Featured Content
More featured content
Tackling the Cost of Living Crisis
In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.
CSR and Sustainability in Financial Services
In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.
More featured content
Ready to get started?
Our Solutions
About Us
Testimonials
More testimonials
Mark Homans
Our sky high NPS following learner feedback speaks for itself - this platform has delivered a lot of value.
Fiona Quinn
Learning is accessible and the tool assists in the continued development of all our employees. It is a fantastic tool for our business!
More testimonials
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Present Value Calculations (Bonds)
Abdulla Javeri
30 years: Financial markets trader
In this video, Abdulla outlines the formula used in bond markets discounted for multiple periods.
In this video, Abdulla outlines the formula used in bond markets discounted for multiple periods.
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Present Value Calculations (Bonds)
4 mins 4 secs
The value of the formulae used in bond markets to discount for multiple periods relies on the appropriate inputs. And there are many. Incorrect inputs will result in an incorrect PV and valuation.
Key learning objectives:
Understand how different rates affect the present value calculations of cash flows
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Understand how different rates affect the present value calculations of cash flows
The value of the formula used in bond markets to discount for multiple periods relies on the appropriate inputs. And there are many. A simplified version of the formula is as follows:
PV = CF/(1+rp)periods
To find the present value of a given cash flow, use the term on the right of the division sign to discount it. Investors need to make decisions in respect of the interest or discount rate and the time in the power (or exponent). Incorrect inputs will result in an incorrect PV and valuation.
The choices in terms of the interest rate are between nominal annual rates, periodic rates and effective annual rates. If we apply a periodic rate, is it a nominal annual rate divided by frequency of compounding periods in a year, or an effective annual rate divided by frequency? For the power or exponent, the choice is between time in periods or in years.
Correct inputs will yield correct numbers. Any other combination will potentially result in valuation errors and therefore losses.
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Abdulla Javeri
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