IDEAS home Printed from https://ideas.repec.org/h/spr/sptchp/978-3-030-84600-8_2.html
   My bibliography  Save this book chapter

Basic Finance: Interest Rates, DiscountingDiscounting, Investments, Loans

In: Capital Market Finance

Author

Listed:
  • Patrice Poncet

    (ESSEC Business School)

  • Roland Portait

    (ESSEC Business School)

Abstract

Interest rates allow estimating the value today of future cash flows and defining and calculating the return on investment or the cost of financing. Some fundamental concepts such as financial leverage or the distinction between real and nominal cash flows and interest rates are also discussed. We first explain how to represent lending and borrowing and, more generally, investments and financing through cash flow sequences. We then present the various interest rates in use in the market and the different conventions they give rise to. We then discuss the methods of estimating present values and their applications to the analysis of investments, before studying the mechanics of long-term credits.

Suggested Citation

  • Patrice Poncet & Roland Portait, 2022. "Basic Finance: Interest Rates, DiscountingDiscounting, Investments, Loans," Springer Texts in Business and Economics, in: Capital Market Finance, chapter 2, pages 39-92, Springer.
    • Handle: RePEc:spr:sptchp:978-3-030-84600-8_2
    DOI: 10.1007/978-3-030-84600-8_2
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sptchp:978-3-030-84600-8_2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.