Future value vs present value
Posted by Dr. Yan Lyansky on 23rd Nov 2021
I taught about bonds at Eastern Oregon University for the first time. Bonds and zero coupon bonds are normally covered in business programs ( especially MBA programs ). I was excited with the opportunity.
The biggest concepts came from present value and future value of assets. It is assumed there is a risk free interest rate, hence an investor should use this instead of letting money sit. This increase in value creates the concept of present value vs future value.