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The present value of future cash flows has what relationship to interest rate?

The present value of future cash flows is inversely related to the interest rate.


How are interest on a bond calculated?

Know the bond's face value, then, find the bond's coupon interest rate at the time the bond was issued or bought, then, multiply the bond's face value by the coupon interest rate it had when issued, then, know when your bond's interest payments are made, finally, multiply the product of the bond's face value and interest rate by the number of months in between payments.


What is the difference between present value interest factors versus future value interest factor?

The Present Value Interest Factor PVIF is used to find the present value of future payments, by discounting them at some specific rate. It decreases the amount. It is always less than oneBut, the Future Value Interest Factor FVIF is used to find the future value of present amounts. It increases the present amount. It is always greater than one.


If the interest rate is 4 percent what is the present value of this stream of payments?

Present value of streams can be found by dividing the streams with 4 percent interest rate for example if stream is 100 then present value will be present value = 100 / .04


What is the value of compound interest?

Compound interest increases the amount earned by adding credited interest to the principal, and interest will then be earned on that money as well. The longer the principal and interest remain in the account, the greater the earnings they will accrue.

Related Questions

What does academic area mean?

Academic area means subject, or the area of interest to an academic professional.


Why must researchers have clearly defined research question?

A clearly-defined research question helps the health professional determine the area or subject of interest


How to ask for a research opportunity effectively?

To ask for a research opportunity effectively, you should first identify a specific area of interest, then reach out to professors or researchers in that field with a polite and professional email expressing your interest in their work and asking if there are any opportunities to get involved in their research projects.


How to ask a professor to do research with them?

To ask a professor to do research with them, you can start by expressing your interest in their research area and explaining why you would like to work with them. Be respectful and professional in your communication, and be prepared to discuss your qualifications and how you can contribute to their research projects.


What is the population of Value Research?

Value Research's population is 2,007.


Maturity value of an interest-bearing note payable is the?

Face value plus interest.


When was New York Public Interest Research Group created?

New York Public Interest Research Group was created in 1973.


Where can I find the highest interest rates for certificates of deposit?

I would check out monitorbankrates.com (http://cdrates.monitorbankrates.com/). There, you can research which banks have the highest rate of return in your area.


When was Value Research created?

Value Research was created on 1990-01-01.


What is the definition of managerial value of business research?

Marginal value of business research


Where can I find trade schools in my area?

Start your research with these two sites: http://www.trade-schools.net/ and http://www.collegebound.net Both sites let you tailor a search for your area, depending on your field of interest.


Why do scientists need governmental funding?

(a) The scientists involved might not have tried to make a business case for their research to secure funding from business, inspite of its potential commercial or industrial value. (b) Although the outcomes of the research might have value to business it might be too expensive or risky to be of interest to business. (c) There might be political reasons for supporting the research. (d) There might be no business value for the results of the research, or that business value might be unclear. (e) Similar to (c), there is student demand for studies in many university faculties, and public interest in their results, in spite of the absence of any commercial or practical value for them.