"Lec 7 - Shakespeare's Merchant of Venice and Collateral, Present Value and the Vocabulary of Finance" Financial Theory (ECON 251) While economists didn't have a good theory of interest until Irving Fisher came along, and didn't understand the role of collateral until even later, Shakespeare understood many of these things hundreds of years earlier. The first half of this lecture examines Shakespeare's economic insights in depth, and sees how they sometimes prefigured or even surpassed Irving Fisher's intuitions. The second half of this lecture uses the concept of present value to define and explain some of the basic financial instruments: coupon bonds, annuities, perpetuities, and mortgages. 00:00 - Chapter 1. Introduction 01:23 - Chapter 2. Contracts in Merchant of Venice 20:23 - Chapter 3. The Doubling Rule 36:07 - Chapter 4. Coupon Bonds, Annuities, and Perpetuities 54:24 - Chapter 5. Mortgage 59:15 - Chapter 6. Applications of Financial Instruments Complete course materials are available at the Open Yale Courses website: http://open.yale.edu/courses This course was recorded in Fall 2009.
Video is embedded from external source so embedding is not available.
Video is embedded from external source so download is not available.
Channels: Finance
Tags: Lec 7 - Shakespeare's Merchant of Venice and Collateral, Present Value and the Vocabulary of Finance
Uploaded by: yalefinancialth ( Send Message ) on 12-09-2012.
Duration: 78m 35s
No content is added to this lecture.
This video is a part of a lecture series from of Yale
Lec 2- Utilities, Endowments, and Equilibrium
Lec 4- Efficiency, Assets, and Time
Lec 5- Present Value Prices and the Real Rate of Interest
Lec 6 - Irving Fisher's Impatience Theory of Interest
Lec 8 - How a Long-Lived Institution Figures an Annual Budget. Yield
Lec 10 - Dynamic Present Value
Lec 12 - Overlapping Generations Models of the Economy
Lec 13 - Demography and Asset Pricing: Will the Stock Market Decline when the Baby Boomers Retire?
Lec 14 - Quantifying Uncertainty and Risk
Lec 15 - Uncertainty and the Rational Expectations Hypothesis
Lec 16 - Backward Induction and Optimal Stopping Times
Lec 17 - Callable Bonds and the Mortgage Prepayment Option
Lec 18 - Modeling Mortgage Prepayments and Valuing Mortgages
Lec 19 - History of the Mortgage Market: A Personal Narrative
Lec 21 - Dynamic Hedging and Average Life
Lec 22 - Risk Aversion and the Capital Asset Pricing Theorem
Lec 23 - The Mutual Fund Theorem and Covariance Pricing Theorems
Lec 24 - Risk, Return, and Social Security
Lec 25 - The Leverage Cycle and the Subprime Mortgage Crisis