Matematica Finanziaria Economia

This set of flashcards covers key vocabulary terms and definitions related to Financial Mathematics and Economics as discussed in the lecture.

Financial Operation

An exchange involving two or more financial entities that can be equitable, depending on various factors.

Discount

The difference between the sum we should have paid and what we actually paid.

Interest

The compensation for the borrower for using a sum of money over time.

Capitalization

The process of determining the future value of an investment based on a specific interest rate.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Annuity

A series of payments made at equal intervals.

Zero Coupon Bond

A bond that pays no interest but is traded at a discount to its face value.

Duration

A measure of the sensitivity of the price of a bond to changes in interest rates.

Net Present Value (NPV)

The difference between the present value of cash inflows and outflows over a period of time.

Internal Rate of Return (IRR)

The discount rate that makes the net present value of all cash flows from a particular project equal to zero.