Difference between an annuity and perpetuity

Compounding and Period [LO1, 2] (Professor)

Compounding and Period [LO1, 2] As you increase the length of time involved, what happens to future values? What happens to present values?

#2 Loans and Interest Rates [LO4] (Professor)

Loans and Interest Rates [LO4] In the chapter, we gave several examples of so-called payday loans. As you saw, the interest rates on these loans can be extremely high and are even called predatory by some. Do you think such high interest loans are ethical? Why or why not?

#3 Discounted Cash Flow Valuation

Consider the following as you read:

What is the difference between an annuity and perpetuity?#4 Bond Ratings [LO3] (Professor)

Bond Ratings [LO3] Companies pay rating agencies such as Moody’s and S&P to rate their bonds, and the costs can be substantial. However, companies are not required to have their bonds rated; doing so is strictly voluntary. Why do you think they do it?

#5 Interest Rates and Bond Valuation

Consider the following as you read:

Which Time Value of Money (TVM) inputs are used to calculate the yield on a bond?

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