support@accepted.com
Get Your Free Consultation!

Which program are you applying to?

  • - Select a program -
  • MBA/EMBA
  • Law School
  • Grad School, PhD
  • MD/DO, Residency
  • Other Healthcare Programs
  • College
  • About Accepted
    • About us
      • The Accepted Advantage
      • Clients Accepted At
      • In The News
    • Client Feedback
    • Contact Us
  • Meet the Team
    • MBA Admissions Consultants
    • Med School Admissions Consultants
    • Grad School Admissions Consultants
    • Law School Admissions Consultants
    • College Admissions Consultants
  • Free Resources
    • MBA
      • Free Guides
      • Selectivity Index
      • Sample Essays
      • Essay Tips
      • MBA Podcast Episodes
      • MBA Deadlines
    • Med School
      • Free Guides
      • Selectivity Index
      • Sample Essays
      • Essay Tips
      • Med School Podcast Episodes
    • Healthcare Programs
      • Free Guides
      • Admissions Straight Talk Podcast for Healthcare Applicants
    • Grad School
      • Free Guides
      • Sample Essays
      • Grad School Podcast Episodes
    • Law School
      • Free Guides
      • Selectivity Index
      • Sample Essays
      • Law School Podcast Episodes
    • College
      • Free Guides
      • Sample Essays
      • Admissions Straight Talk Podcast for College Applicants
  • Services
    • MBA
      • Complete Packages
      • Essay Editing
      • Resume Services
      • Interview Prep
      • MORE
    • Med School
      • Premed Packages
      • Primary App Packages
      • Secondary App Packages
      • Essay Editing
      • Interview Prep
      • MORE
    • Healthcare
      • Postbac Packages
      • MPH Packages
      • NursingCAS Packages
      • PharmD Packages
      • Essay Editing
      • MORE
    • Grad School
      • Complete Packages
      • PhD Packages
      • Essay Editing
      • CV/Resume Assistance
      • MORE
    • Law School
      • Complete Packages
      • Essay Editing
      • Interview Prep
      • MORE
    • College
      • Complete Packages
      • Common App Package
      • Essay Editing
      • MORE
  • Blog
    • MBA Blog Posts
    • Medical School Blog Posts
    • Other Healthcare Blog Posts
    • Grad School Blog Posts
    • Law School Blog Posts
    • College Blog Posts
    • Admissions Straight Talk Podcast
Accepted

Accepted Admissions Blog

Everything you need to know to get Accepted

May 4, 2009

Reading Time: < 1 minutes

MBA Math Monday: Time Value of Money

Quantitative finance is built on a foundation of time value of money relationships that allow a single amount of money at one point in time to be converted into an equivalent amount of money at a different point in time given a specified time period and applicable rate.

This rate is typically referred to as an interest rate (when moving forward in time) or discount rate (when moving backward). Sometimes we’re wondering how investments will grow over time. Other times we wonder what future cash flows are worth today or how much we should invest today to meet future obligations.

Judgments about applicable rates are at the heart of current debate about the value of illiquid assets on Wall Street and the negotiations with GM’s bondholders.  It all starts with the time value of money formula that unlocks exercises like this.

Exercise:

A zero-coupon bond is a security that pays no interest, and is therefore bought at a substantial discount from its face value. Using a discount rate of 8%, how much would you pay today for a zero coupon bond with a face value of $2,300 that matures in 7 years?

Solution (with audio commentary): click here

Prof. Peter Regan created the self-paced, online MBA Math quantitative skills course and teaches live MBA courses at Dartmouth (Tuck), Duke (Fuqua), and Cornell (Johnson).


Article by / MBA Admissions / finance

Get Accepted!

Sign up for a free consultation today!

Which program are you applying to?

Blog Categories

  • Admissions Consulting
  • Admissions Straight Talk Podcast
  • College Admissions
  • Grad School Admissions
  • Law School Admissions
  • MBA Admissions
  • Medical School Admissions
  • Other Healthcare Admissions
  • Uncategorized

Popular Blog Posts

1. 7 Simple Steps to Writing an Excellent Diversity Essay

2. How to Write About Your Research Interests

3. Four Ways to Show How You’ll Contribute in the Future

4. When Will Medical Schools Give You An Answer?

5. Harvard Business School MBA Essay Tips and Deadlines

6. M7 MBA Programs: Everything You Need to Know in 2023

7. Make the Most of Your Experiences for ERAS

8. 2023-24 AMCAS Work and Activities Section: What to Include (With Examples)

Sample Essays

MBA Personal Statement Examples

Medical School Personal Statement Examples

Graduate School Personal Statement Examples

Law School Personal Statement Examples

College Application Essay Examples

 

Home Page Services and Prices MBA Med School Law School Grad School College

About Us Press Room Contact Us Podcast Accepted Blog
Privacy Policy Website Terms of Use Disclaimer Client Terms of Service

Accepted 1171 S. Robertson Blvd. #140 Los Angeles CA 90035 +1 (310) 815-9553
© 2022 Accepted

BBB A+ RatingStamp of AIGAC Excellence

Copyright © 2023 · Education Pro Theme on Genesis Framework · WordPress · Log in