ULO 1- Explain how the time value of money works and discuss why it is such an important concept in finance (CLO 2 and 4). ULO 2- Identify the different types of annuities, calculate the present value and future value of both an ordinary annuity and an annuity due, and calculate the relevant annuity payments (CLO 4).

ULO 3- Explain the difference between nominal, periodic, and effective interest rates. An understanding of these concepts is necessary when comparing rates of returns on alternative investments (CLO 2 and 4).

ULO 4- List the various factors that influence the cost of money (CLO 2).

ULO 5- Discuss how market interest rates are affected by borrowers need for capital, expected inflation, different securities risks, and securities liquidity (CLO 2 and 3).

ULO 6- Explain what the yield curve is, what determines its shape, and how you can use the yield curve to help forecast future interest rates (CLO 2 and 4).