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Finance and capital markets
Put and call options: Options, swaps, futures, MBSs, CDOs, and other derivativesForward and futures contracts: Options, swaps, futures, MBSs, CDOs, and other derivativesMortgage-backed securities: Options, swaps, futures, MBSs, CDOs, and other derivatives
Collateralized debt obligations: Options, swaps, futures, MBSs, CDOs, and other derivativesCredit default swaps: Options, swaps, futures, MBSs, CDOs, and other derivativesInterest rate swaps: Options, swaps, futures, MBSs, CDOs, and other derivativesBlack-Scholes formula: Options, swaps, futures, MBSs, CDOs, and other derivatives
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Get StartedCompound interest basics
Interest is the basis of modern capital markets. Depending on whether you are lending or borrowing, it can be viewed as a return on an asset (lending) or the cost of capital (borrowing).
This tutorial gives an introduction to this fundamental concept, including what it means to compound. It also gives a rule of thumb that might make it easy to do some rough interest calculations in your head.
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