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Retrieving "Cash Flows" from the archives

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  1. Capital Markets

    Linked via "cash flows"

    Valuation Theory and Anomalies
    Standard valuation models, such as the Discounted Cash Flow (DCF) method-method/), rely on discounting expected future cash flows by an appropriate discount rate, often approximated using the Capital Asset Pricing Model (CAPM)/).
    The CAPM/) formula is classically stated as:

  2. Debt Obligations

    Linked via "cash flows"

    Valuation and Yield Dynamics
    The present value of a debt obligation is calculated by discounting expected future cash flows using an appropriate discount rate, which incorporates the risk-free rate plus necessary risk premiums.
    The Discount Rate and Term Structure

  3. Effective Yield

    Linked via "cash flows"

    Effective Yield (Finance) is a financial metric used to express the true rate of return earned on an investment or paid on a liability over a specific period, periodic fees. It differs from the stated, or nominal rate} by incorporating the temporal dynamics of the [investment structure](/entries/investment-…

  4. Effective Yield

    Linked via "cash flows"

    Effective Yield in Bond Valuation
    For fixed-income securities}, the effective yield is often equated with the Yield to Maturity (YTM)}, provided all cash flows} (coupon payments} and principal repayment} ) are assumed to occur exactly as scheduled without default} or early redemption}. However, the true effective yield must factor in the "[transactional humidity](/entries/transactiona…

  5. Financial Engineering

    Linked via "cash flows"

    Product Classes
    The output of financial engineering is the creation of structured products, which package underlying cash flows and risks into novel securities.
    Derivatives