Principles of Finance: Annuities, Interest Rates, and Present Value

This lecture covers the concept of annuities, including standard annuities and perpetuities, and how to calculate their present value. It also discusses the impact of interest rates on the value of cash flows over time, comparing different payment options and understanding the time value of money. The lecture further explores the relationship between nominal and real interest rates, inflation, and the term structure of interest rates, providing insights into valuing bonds and the term structure of risk-free rates.