Discount Factors (Money Markets)

Discount Factors (Money Markets)

Abdulla Javeri

30 years: Financial markets trader

In this video, Abdulla explains discount factors as they specifically apply to money markets.

In this video, Abdulla explains discount factors as they specifically apply to money markets.

Join now to start learning today

Finance Unlocked is the video learning platform built for finance professionals.

This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.

Discount Factors (Money Markets)

3 mins 46 secs

Overview

The discount factor used to calculate the present value of a money market fund must take into account the accrual time of the fund. This discount factor is used specifically for the money market, where securities mature in less than one year (so the formula has no exponents).

Key learning objectives:

  • Knowing the PV formula for money markets and understanding the terms

Join now to watch

This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.

Summary
logo-animationlogo-animationlogo-animation

Join now to watch

This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.

Expert
Abdulla Javeri

Abdulla Javeri

Abdulla’s career in the financial markets started in 1990 when he entered the trading floor of the London International Financial Futures Exchange, LIFFE, and qualified as a pit trader in equity and equity index options. In 1996, Abdulla became a trainer for regulatory qualifications and then for non-exam courses, primarily covering all major financial products.