What's the difference between discrete compounding and continuous compounding? And you're talking about discrete compounding here, right?
@letmeexplaincfaАй бұрын
Discrete compounding is when you have compounding occurring with a specified frequency like quarterly or monthly. Continuous compounding occurs when you compound constantly and frequency effectively goes to infinity. The latter is used mainly in derivatives pricing and valuation models.
@Iamlearning-o7yАй бұрын
If we put them all together, what is the difference between stated rate, effective rate, required rate of return, discount rate, WACC (cost% capital) Which terms can be used interchangeably? And which topics will it touch on for us to keep in mind
@letmeexplaincfaАй бұрын
Hi, they can all appear interchangeably to be honest. The name typically depends on topic area. These terms appear in quantitative methods, fixed income, equity investments, portfolio mgmt and corporate issuers.
@mostafaemad74015 күн бұрын
Sir , you dont include this video on the second lesson for the quantitative in the website , is it related to other topic ?
@letmeexplaincfa14 күн бұрын
No, don't worry about it. No longer relevant
@mostafaemad74014 күн бұрын
@@letmeexplaincfa okay thanks sir for the usual immediate responses
@harveymack291210 күн бұрын
@@letmeexplaincfa Sorry, but does this mean for 2024 / 2025 we dont need this optional playlist?
@letmeexplaincfaКүн бұрын
@@harveymack2912 the Curriculum for 2025 is pretty much the same as for 2024, so the same content applies
@mammmmmoth Жыл бұрын
is there a easy way to figure out APR from EAR say 9 % compounded semi annually?
@letmeexplaincfa Жыл бұрын
Yes, you can do it by reverse engineering the formula. When I'm in front of a computer, I'll write it out.
@mammmmmoth Жыл бұрын
@@letmeexplaincfa Great thanks
@letmeexplaincfa Жыл бұрын
Ok, so if you take the basic relationship: EAR = (1 + r/m)^m - 1 (1 + r/m)^m = (1 + EAR) 1 + r/m = (1 + EAR)^(1/m) r = [(1 + EAR)^(1/m) - 1]m So, for an EAR of 9% and m = 2, you will get: r = [1.09^(1/2) - 1] x 2 = 8.806% Its not the most intuitive of transformations and hopefully you won't have to do this on the exam!