20% of syllabus · NPV/IRR, bond pricing, loan schedules, project appraisal, yield curves and immunisation.

Lemma · IAI CM1

Derivation-first CM1 prep that respects prerequisites

10 free lessons · master each atom before the next unlocks

Your path through Equation of Value and Applications

6 lessons in one prerequisite chain. Master each stop to unlock the next — derivation-first, atom by atom.

Net present value and internal rate of return
Start
Value a project's cashflows with NPV and locate the internal rate of return as the root of the equation of value.
2 atoms · Free · Entry lesson
Bond pricing and yields
Open
Price a fixed-interest bond as the present value of coupons plus redemption, and interpret running and redemption yields.
2 atoms · Free · After lesson 1
Loan schedules and amortisation
Open
Split level loan repayments into interest and capital, and value outstanding loans prospectively and retrospectively.
2 atoms · Founding member · After lesson 2
Project appraisal: payback and discounted payback
Open
Compare investment projects using payback period, discounted payback period and NPV.
2 atoms · Founding member · After lesson 3
Yield curves and the term structure
Open
Define spot and forward rates, relate them through no-arbitrage, and outline theories of the term structure.
2 atoms · Founding member · After lesson 4
Duration and immunisation
Open
Measure interest-rate sensitivity with duration and convexity, and state Redington's immunisation conditions.
2 atoms · Founding member · After lesson 5

Lemma — prerequisite-ordered exam prep