Learning guides

A focused starting point for the concepts behind Finocturne's current calculators.

Investment

What is compound interest?Compounding reinvests prior interest or returns so future returns can earn returns of their own.What is CAGR?CAGR is the constant annual rate that links a beginning value to an ending value.

Bond

What is yield to maturity?Yield to maturity is the annualized rate making scheduled cash flows' present value equal the market price.

Corporate finance

What is net present value?NPV discounts cash flows from different dates to today and sums them.What is internal rate of return?IRR is the discount rate at which cash flows have zero net present value.