BUS 401: Present and Future Values, and Expected Returns

BUS 401: Present and Future Values, and Expected Returns

This is a journal entry and does not need to have a specific word count, page count or format. The topic needs to be written on two important topics in finance: (a) present and future values and (b) security valuation.

Critically reflect on the importance of present and future values.  What factors must be considered when calculating present and future values? What other qualitative factors play into present and future value decisions? Perhaps you have opportunities in your professional life to use present and future values. What are some real or potential applications of these concepts?

Also think about expected returns. Why do bond values go down when interest rates go up? Is this true in the opposite direction?

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The future value measure is the future sum of money that a particular sum of money is worth at a particular time. This calculation involves multiplying the present sum of money with a particular interest rate. This ensures that a future sum of money has accumulated over a specific period of time. The present value on the other hand is the current worth of a sum of money at a particular time. Money is in most……

APA

650 words