**Telephone:** +44 (0)20 7920 9128**Email:** [email protected]**Web:** www.barbicanconsulting.co.uk

A foundation course that explains interest calculations and present value and why they are important.

It is suitable for those working in or around financial markets who need to know more.

There are simple examples with time for questions and answers.

This course is only available in-house and is suitable for up to 12 people.

This is what is covered:

- Simple interest
- Calculation & application
- Compound interest
- Calculation & application
- Discount factors
- Discount factors, present / future value
- The zero coupon approach
- Calculation & application
- Yield & internal rate of return
- Calculation & application
- Valuation of derivatives
- How discount factors are used to find mark-to-market values
- Credit spread adjustments

Learn about the following: The time value of money. How financial products can be split into cash flows. How discount factors are used. How present value is used in pricing and valuation. Why valuations change. What causes interest rates to change. How traders can profit from their expectations.

18th September 2009

A dollar paid to you now is worth more than one paid to you in the future. Why? Because if you had a dollar now you could invest it and earn interest. Simple enough but exactly how much is money worth today when it is paid in the future? To answer that you need to know about discounting.

19th September 2009

Present value (PV) calculations are commonly used in financial markets. They are particularly relevant to over-the-counter derivatives. Their use includes pricing and marking-to-market transactions. PV uses a discount factor to convert future money into today's money. The sum of any deal's cash flows in present value terms is referred to as the net present value (NPV). From a dealer's perspective this is important. Transactions with positive NPVs equate to profit and those with negative NPVs losses. The following is an introductory explanation to zero coupon discount factors. The examples use USD rates where the instruments pay interest on an actual/360 day count basis.

6th May 2020

For many banks and building societies Net Interest Income (NII) is a substantial part of “earnings”. Earnings allow us to add to capital, pay dividends and grow the business. Given its importance should NII be targeted by the Board?

BPV is a method that is used to measure interest rate risk. It is sometimes referred to as a delta or DV01. It is often used to measure the interest rate risk associated with swap trading books, bond trading portfolios and money market books.