15.401 | Fall 2008 | Graduate
Finance Theory I
Video Lectures and Slides

Present Value Relations

Video Lectures

Present Value Relations I

Part I of Present Value Relations

Description: This video lecture presents the definition of an asset as a sequence of current and future cash flows, and the implications of that definition. Valuation of cash flows is presented in the context of time, certainty, and the present value operator.

Present Value Relations II

Part II of Present Value Relations

Description: This video lecture covers examples on calculating net present value, comparing perpetuities and annuities, and conventions for compounding.

Present Value Relations III

Part III of Present Value Relations

Description: This video lecture starts with a discussion of leverage ratio with an example from Lehman Brothers. The video lecture then continues to cover the last portion of present value relations, including inflation and how to calculate real and nominal rate of return.

Slides

Present Value Relations Slides 1–36 (PDF)

  • Video for Part I of Present Value Relations covers slides 1–16
  • Video for Part II of Present Value Relations covers slides 17–29
  • Video for Part III of Present Value Relations covers slides 30–36

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As Taught In
Fall 2008
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Learning Resource Types
grading Exams with Solutions
notes Lecture Notes
theaters Lecture Videos
assignment_turned_in Problem Sets with Solutions