The Time Value of Money in Finance - Part I

Explore the fundamental concepts of time value of money in this comprehensive video lecture designed for the 2025 CFA® Level I Exam Quantitative Methods Module 2. Learn how to calculate and interpret present values of fixed-income and equity instruments based on expected future cash flows, determine implied returns of fixed-income instruments and required returns for equity instruments, and understand the cash flow additivity principle and its importance for the no-arbitrage condition. Master essential financial calculations including implied forward interest rates, forward exchange rates, and option values that are critical for success in the CFA Level I examination. This one-hour tutorial provides in-depth coverage of key learning objectives from the Quantitative Methods section of the CFA curriculum.