Quick tour of the current AI/attention economy (Comet-style agents, Perplexity, Apple, Claude Skills, Grok) to frame how platforms, chips, and data shape markets.
Pivoted to midterm review focused on:
Time Value of Money and Bond Pricing
Duration (Macaulay & Modified)
Return math (HPR) and the coupon vs. yield vs. market rate distinction
Real-world tie-in: SVB and how fast rate hikes hit long-duration portfolios.
Bond pricing (annual coupons):
( P = \sum_{t=1}^{T}\dfrac{CF_t}{(1+r)^t} ) where (CF_T = C + FV), else (CF_t=C).
Inverse relation: If rates↑ ⇒ prices↓ (and vice versa).
Coupon vs Yield vs Rate:
Coupon rate = fixed % of face value paid each period.
YTM = IRR of all cash flows at today’s price.
Market rate = discount rate; at par, coupon ≈ yield.
Macaulay Duration (intuition): weighted-average time of PV cash flows → measures interest-rate sensitivity (it’s not “just time”).
Weights: ( w_t=\dfrac{PV(CF_t)}{P} ), sum to 1.
( \text{MacDur}=\sum t\cdot w_t ).
Modified Duration: ( \text{ModDur}=\dfrac{\text{MacDur}}{1+y} )
Approx %ΔPrice for a 1% (100 bp) rate move: ( %\Delta P \approx -\text{ModDur}\times \Delta y ).
Zero-coupon rule: Duration = maturity (no coupons).
Holding Period Return (HPR):
( \text{HPR}=\dfrac{P_1 - P_0 + \text{coupon}}{P_0} ).
If price unchanged and you received the coupon, HPR = coupon/price.
Price a 5-year, 4% annual coupon, FV=1,000 at y=5%.
Compute Macaulay duration (weights via PVs), then Modified duration.
Use ModDur to approximate the % price change for a +50 bp shock.
Explain (in 3–4 lines) coupon vs. yield vs. market rate.
If you can do those cleanly, you’re midterm-ready.
20 de octubre de 2025, 8:08a.m. Anyone has found something? No one. Comment. I have tried comment comment this weekend. I don’t know comment is a comment is a brochure. Um. I have tried. I have just downloaded. You can open that is called agent or ask me things to do and I have asked. I have logged in. I have given him. For her, all my all my details. That means just opening e-mail. Opening my e-mail account, yes. And I have tell comment, tell the agent from comment. I want to eat Mia, Icale, Nadir, something see fast and whatever. And Comet made me the reservation sending me a WhatsApp without giving more information. Comet look for different choices. Yes. Also I have prepared ask him to prepare a report, yes. Yes, I asked for the closure. I don’t know it. I insert my e-mail ago. Yes, you can see as if it were a deep, deep service. I’m looking for places that I have all, but you can see the door. I’m looking for places. I have all the places. I’m looking for one. I think one. No, he stopped. He stopped and he told me you can choose among all these places. Yes. And I told him I want this one. Make a reservation and then. Next thing I received was an e-mail with the reservation made. What is this about? The next step regarding an amazing war? On so comment perplexity. Anything else? Anyone knows how herself something regarding perplexity? No one look perplexity and look for perplexity and apple. Apple. How do you say apple? You say apple, perplexity and apple. What is? Have you heard of apple about the jokes? Where are they now? What are they? What is? What is the name of this guy? What is thinking about? What is he thinking about? We made an important date regarding virtual reality. Anyone knows what is the difference between virtual reality and augmented reality? All of you know what are these two things? Hello. Virtual reality. You put glasses and you don’t see anything, but you are in a different world. Augmented reality is combining what you are looking. Imagine that we all of us have augmented reality. Yes, I can make here something in the middle and you will be. Looking at me and at the same time looking to the thing that I’m creating here. Augmented augmented reality is missing. Yes. Have you tried neutral reality? How was it? One minute of wow. And after 5 minutes headaches and after 10 minutes I don’t want to. I mean, you lost interest. You can have at your home. But Apple? What Apple has on? An incredible amount of money in there built to build to our reality tool. Yeah, what Apple is doing. Have you searched for something regarding Apple and. Apple and have you searched for something regarding Apple and perplexity? No one. What Apple is going to do? I don’t know. I don’t know about people, but what probably Apple will do. No one. Oh. What is this? Google search bar, yes. Google search bar. What is the piece of new? All of us. So last week all of us. So Google search. Bar. It’s still here. OK, I sorry, I thought that these numbers has gone. I thought that these numbers has gone, yes. I thought that these numbers has gone. OK, Apple is reportedly in talks to acquire Perplexity AI, a conversional search engine to entrace its own AI capabilities. Yes, what I’m talking about. What I’m talking about, I’m talking that these. This that this is I’ve tried this weekend. This is absolutely crazy how it works. It didn’t miss a thought. I’ve tried with restaurants I have asked him and. It’s like having an agent inside your browser. Yes, want to review these, look for them. It’s like having not scientific, not scientific, an agent. You just tell your browser what you want to do and the browser work for you so. This would have to do it. Yes, on the other hand. Have you heard about cloud and skills? Have you heard about cloud and skills? Four days. Four days. Three days become an expert in cloud skills, yes. What is cloud? Cloud belongs to anthropic. Anyone have heard about anthropic? Oh, no one. And traffic are ex workers from open A I. Have you have out open A I? Tell me that yes, please open AI. You have out Mitha. Uh, let me. Meta. And Google is. Meta. If I say meta, any one of you will think about Raven. Raven. Raven. Any also, yes. Deepseek and also Deepseek there. Yes, Deepseek. Good. If I have written deep seat here, what else should I have written? Also I can write, you know me? Deep sea Xiaomi. What else do I have written? Let me write here a small BYB. Xiaomi manufacture. What does Xiaomi manufacture? Telephones. Yes, telephones. BYD electrical cars will be right there. Tesla. Xiaomi also manufacture cars. Yes, but today right here. Forget about virtual reality, but Xiaomi also has. Here, let me write. Say yes. China. But I’m talking about China. I’m talking about China. Not yet. I’m talking about. Comment perplexity. Apple, yes. I’m talking about cloud that are X workers from open AI. Then there goes Meta with Lama, yes. I’ve written Tesla, so let me write here. Anyone. Does anyone knows what is broke? Hello. No. Hello. Hello. You know, Rob, we do, but I’m doing like a survive. That’s true. 30 seconds, 30 seconds. Because I want to take advantage of their don’t restrict. It’s 8 in the morning and I want to take advantage of their ignorance. I want to point out that this is. Knowing what is broke, knowing. This is something include group that should be on your veins. Yes, all of you know the name of with all respect, with all respect, all of you know your the name of your dad, your mom. Absolutely, yes. Your brothers, your sisters, your peers, all of you know all these days. These names are familiar, no? If all of you know when talking about Raven and Metta, if all of you recognize what I’m talking about, but you don’t know what I’m talking about when talking about Grok, you have a problem. And the problem is called media and adverts advertising. The problem has to do with TikTok. You spend probably too much time in TikTok or Instagram without thinking by yourself. Because there is. I need here also Tiktok Tiktok. Yes, here there is Meta Instagram if I say Instagram. Insta, Instagram, all of you. Anyone knows what I’m talking about if I say Instagram. If I say heroin, all of you know what I’m talking about. If I say sex, all of you know what I’m talking about. Hey. What is the name of Taylor Swift? I say, Taylor, all of you know what I’m doing now. Thank you from. I say power, you know power. All of you should know, but I am going to a different level, yes. You should, you should. Sorry for saying should I is how is a verb that I don’t like too much, but you should go farther. You cannot just stay in the front line looking what they. Want you to look. I’m careful because here I’m mixing things. I am here. I’m mixing much more things. The more things that I mix, the more confusion, yes. The more confusion. But what I’m talking about, what is Europe? How do you call yourself? I want to pronounce it. That is good, OK? What is group? It’s like Elon’s Elon Musk’s and X’s AI. Yeah, Elon Musk’s AI. Do you know Elon Musk? From they had an affair. Now they are divorced. They have. They had an affair starting the 20th of January. They length around six months. Now they are divorced. Why group? Why Elon Musk is interested? In AI. Elon Musk was one of the founders. Elon Musk at the beginning put 2 billion in open AI and Elon Musk and Sam Almond. Used to have problems and in the 2017 Elon Musk and Sam Marman get divorced. Divorced. They said they separate themselves. Why? Elon Musk said. Oh, I’m going to have urgency problems. Because I am in Tesla and I cannot be in Tesla and in AI at the same time. 6-7 years later, where is hello mask Tesla in group in X in SpaceX? You understand what I’m saying? I’m talking. I’m giving you a lot, a lot, a lot, a lot of information. I have not written here some almond. Tim Cook, Yes. OK. Tina, Tick tock. What is this? What is this? This is a map. Let me go further and let me make a a big, big jump. Let me jump in too. With all respect and and let me jump into Ukraine, Ukraine. What is Ukraine in Europe, no? What happened last week regarding Palestine? Yes, yes. Yes, absolutely. They say that what is going to happen. What is going to happen regarding? What is going to happen regarding Ukraine? What Ram has said next step is Ukraine, no? Forget about Trump and Ukraine. What? What are we look? What can we see in Ukraine? The war? There used to be a a line. No. Well, in the war there was one side, another side and a line, no. What is going on in Ukraine world? There is not a line anymore. There is a completely zone that is called death zone. Yes, there is not a line anymore. You can be killed no matter where you are. Why? Because of drones. There used to be tanks and helicopters. How much does a tank cost? $1,000,000? No tank cost $1,000,000. A helicopter cost $1,000,000? No billions. How much are drone cost? 1002 thousand with one $2000 you can do whatever you want thinking about killing people or or destroying things. Yes, what I want you to see that thinking about. Ukraine war. We have moved. We have moved from a war where there were lines. You are in one side, I am in the other. And if I go into the line, I will try to give you yes to a war where there are no lines anymore. You know that if you are in Kiev or if you are in the Basque. You can be killed instantly. Instantly. You are walking in the street or you are talking with someone. There is a drone somewhere and you disappear from one moment to another. You understand what I’m saying? With all respect, with all respect, I’m talking, but we have moved what I’m talking about, I’m talking about the war, war has changed. And it’s not only war regarding killing people. Yes, let me. Let me show you. I have. I have told. I have told you about this book that I don’t care to read. And rest read the warfare. I have. Do I have told you about this book? Is it the first time you see this book? Let me. Paul, where are you? Ikade? Yep. I see if by doing this. Yes. Oh, OK, not China’s master plan to destroy America, but to make the war. Yes, this book was written. In 19 ninety-nine, yes. And this book is written by two generals. Yes, two generals, two officials from China’s army. But what they say in this book that war will not work the same way anymore. Why not only has to do with three people, what also has to do with signing, signing agreements with news, with markets, with technology, yes, with selling electrical, electric cars, yes. War has to do with war goes through other means. Yes, this book has to do with war. Yes, Ukraine war is an old war with new means. Yes, old war with new means. Old way of doing war. Yes, but there are other ways in order to do work. Make sense? OK. What is this? This is a an absolute. This is a war. This is our war. They are fighting once against another one. This is our war. What are they looking for? They are looking for money for sure. They are looking for money, but also they are looking for. For our attention, for our attention. Are they looking for our attention? They want me to talk about them. It depends. Hello, mask. Hello, Mask. Absolutely, yes. Cato has said Elon mask Twitter, but careful because Twitter is not just. I have Insta. Yes, it’s not. It’s not just social media. Yes, it’s like having a printing press. You can say whatever you want. You are a little mask. You can say whatever you want in Twitter. Make sense? But… Beta? And I have saved Raven. Raven wants your attention. Absolutely yes. Open AI. Open AI. All of you know open A I, GPT. All of you know open A I and GPT. But careful because cloud. Well, who wants your attention? Well, who wants your attention? Not as much, because if you have the whole world attention, if you have the whole world attention, there is a dark side. There is a dark side regarding all these things, which is the dark side. Of AI, which is the large side of AI. You are saying this in a non constructive work. Be a little bit more capitalistic. Where is the dark side? Who cares about people? Now it has to do with with what Joel was saying. She’s saying environmentalism. Neta is from. Neta is Sweden. OK. Someone has said something something regarding the data during this week, each week. What is the dark side of AI? You are right. So it has to do with energy consumption. Energy consumption if you are so DPT. And everyone is working with you. You should give service to the whole world. And this means an incredible amount of money, an incredible amount of money in searches in. Queries. Yes, so Claude. Cloud now with the skills is much, much, much, much better than open AI, not because of the LLM, no, not because of the model, because of the capabilities of working with the skills. What is the skill I’ve been trying then during this weekend? It’s like having MD those inside the LLM. Have you? Do you remember? Have you seen me working with Obsidian and with MD? It’s exactly the same thing that I’m doing both sides, but you do it inside. So personally, personally, with these skills, I haven’t found something new. I’m talking about something that has been developed 2-3 days ago that is having an MD5MD5 together combined with. With the mobile, yes. So GPT needs money. A lot of money. Cloud needs much, much, much less. Money, fewer, money, dance at the BPY. So they don’t have too much people, so you can do more with less and everyone is looking at them, yes. On the other hand, Comet, Comet is absolutely amazing. I strongly recommend all of you to try comment, try to comment, download it. Google open and if you have an Apple ID, put this Apple ID inside comment and ask comment for whatever. Why? Why they are now giving all this value for free? Because Tim Cook needs, Tim Cook needs to make the bell, needs to make the bell song. Yes, Tim Cook apple. Needs to call this. City. Apple needs to call this city and if I say city. What is the next thing? Who is not here yet that they don’t care too much about because their business model has to do with delivering? I’m talking also about Alexana Mathon, yes, but what I want to show you. That this is a war, this is a war and at the same time. What is? Oh, I have written here or here. Yeah, at the same time I’m looking in Google search engine. I am in Chrome, yes. Browser from browser search engine. But look, I have. I have asked Apple and perplexity. What did I tell you to do? What did I tell you to do to look for information regarding perplexity first? No. And then I told you to look for information regarding. Perplexity and apple. I asked you anyone can say me can tell me something regarding apple and apple and perplexity. I asked you. Yes. What did I receive? Highlands. Highlands. I asked the same thing to Google. Abdel and perplexity. And what did I receive? It’s AI without blogging what I was looking for. Was looking for. Google knew. Google knew what I what I need to find. Google gave me here on the other hand. Same, Sir. Same search. Two words. And what’s what Google is showing me? The book. Do you understand? Do you see what I’m talking about? Search engine. Search engine had changed. Go to Google, you look for something and Google before you are resolving. What is this person looking for? A piece of information then. A I takes the word perplexity and apples is looking for news. What is going on regarding perplexity and apples? There is an announce of takeover. So let me show you what you are looking for. On the other hand, unrestricted warfare. But is this a book? Probably this person wants to recommend, wants to buy. What Apple is doing? Their own war. Apple. Sorry, Apple. Google Alphabet is doing. They are doing. They all war in silence. What Google? But who will like what our alphabet would like the world to stay the same? The world to stay safe. What is the threat? What is the threat? These people. Our thinking. That if Apple, that Apple is gonna buy perplexity. Apple is buying at the same time a browser, a browser AI. You understand what I’m saying? OK. Have you understood all these things? Tell me. Oh, no, I was just saying because we’re talking a lot about AI, how would you attend to use the best study for? Quick, let me go quick, quick, quick. Before, yes, before you have gone two steps, let me go the first step. This has to do with finance. This has to do with violence. There is one company that I have not written and the yes media market cap. 4 trillions, 4 trillions, Abel. Apple I will bet 3 trillions and after they buy perplexity. We are in October now. Before December or you will be because December black. Black Friday, Black Friday. Have you have outing Thanksgiving? The third Thursday of you will see this announce be made because they are warming up with comment and perplexity and you will see how happen. What I’m talking about, I’m talking about Magnificent 7, yes, all these things has to do with finance. Absolutely, yes. There are 2-3 elephants in the room. Yes, one elephant is called technology and has to do with magnificent cell. All these things matters. How all these companies, what all these companies need. Chips. Micro chips. Yes, this is absolutely important. This is absolutely important. And there are two other elephants in the room. One is called death. Dollars and debt. What is the US government? What piece of news we saw last week? US is gonna lend 4000. Sorry, 4000 millions, 4040, sorry, 40,000 to Argentina. There is another elephant that is called debt and it’s also called printing dollars. SP500 is in maximum. Bitcoin is in maximum, yes. 60 maximum and there is a fair elephant in the room called China and it right here also and the US government is closed. This is still closed. Debt and media, China and U.S. dollar. These are the elephants we have in the room. Yes. Is this important for finance? The. This is absolutely important for finance. What do I have now? Why I’m talking about this? Because I have your attention. I know all of you now are listen to each word I’m saying, and this is absolutely important and not for the me. But for the midterm, because for the midterm, let me show you. Let me share with you. Let me share with you, share with you, share with you. Let me. Sir, it’s you. A. Yeah. Uh, so I think. Look. Good morning. This is someone from financial market. Sadly I will not be in class today because I am not feeling well. Is there anything I should make up from class or no before the exam? Please let me know. Thanks. Yes. You know, I want to answer whatever. This is the high grades. Don’t worry and I hope you feel better soon. Rest in rest is the priority today in class. We’ll just do a review session for the midterm so you are not missing any new context. Make sure you go over the key topics we have covered. The structure of the financial system, central bank, CCB versus Fed, quantitative efficient, quantitative tightening, money based versus money supply, risk return and liquidity, duration and interest rate risk and efficient market. There will that will be more than enough to prepare for the exam on Wednesday. Let me move here. Let me look for grace look. Grace has written at 7:28 in the morning. I answered her back in less than 10 minutes with an incredible English. This is probably one of my of the best. Of the best. I’m sure I have given in my whole life to one student. Sorry. And that’s more. OK, let me. What does actualizar examen contenido means? In Spanish this means to actualize the content. I’m going to ask. English. A. Sorry, formula. OK. This one someone from one side present value formula and then also you should know how to calculate duration. We have dedicated last three classes to talk about duration and we have done exercises regarding duration. Yes, there is a clear student guide that covers everything students should. Now for financial markets, it’s organized as a learning plus essential financial system, structure and purpose. That’s it. Wow. I’m, I’m gonna. I mean, I love my wife. I’m talking about different levels. Yes, I have seen whatever deal, curve, money, policy, banking. Practically, OK, let me just see if I can serve directly this here. Oh, do you see? It’s okay. Financial system, structure and purpose. Purpose, much saving, financial needs, pillars, institutions, markets, supervised. Supervision and regulation, accounting, classification basics, information efficiency, risk return, liquidity, time value of money, bonds and interest rate risk, improving tuition, monetary policy. US post COVID energy mandates, federal mandate, banking essentials, liquidity, bank run mechanics, interest rate crisis, contaminant exchange regiments and crisis specular rate. Markets and product vehicles, CPS funds, stable coins, conceptual behavioral finance. By exam week, a well preparated student can explain how savings name the supervisors define. Right. I wanna cry. I wanna cry. Yes. Hey, OK. I’m not going to do this, yes. I’m not gonna, yes. So give you this or this because this will be not polite from me. What is duration? Hey. Yes, yes and no. Yes, yes. If I ask you, I mean, I’m going to repeat this exactly how I have say it’s time I have started talking about duration. If I answer you, if I ask you, what is duration and you answer? Time. It will be incorrect. If I asked what is the relation and you answer, relation is time. This answer will be correct. Yes. What is relation? Internet racing. Internet race sensitivity and how is it calculate? How is it calculate? By you mean the way that I would like this? By doing the way that average, for example, imagine that. Imagine that you have a bone. Send me a rate. 5%, yes, 1000 or 100 face value. OK, 505050 maturity. Maturity. Maturity. Perfect. If I ask maturity and you don’t know what to answer, I will. I don’t care because you are in Spain. All of you will. But you understand what I’m saying? No. I’m not. If I need answers, I will go to. But you should know what the hell we are talking about. What is maturity? The time. Maturity. What is maturity? Time. What is duration? It has to do with maturity, but it has to do with interest rate sensitivity. Make sense? You say 7, no 505051050 makes sense. Five is coupon rate. Coupon rate is fixed. It won’t change. Now Ariel, tell me Ariel. Hey. I. Tell me a deal. Be welcome. OK, I want to kill myself. I. I don’t care because I know where I am. I know that you need a formula, but I need you to. Understand whatever. Yes, that is a meter. It’s just a meter. And you don’t need to get to work three. No, no, no, no, I mean. I don’t know the price. I need the deal to maturity. I need the deal in order to calculate the price, or I need the price in order to calculate the deal. 3 percent, 3 percent, 3% once I have. Once I have the deal, once I have the deal, once I have the rate, what can I do? I can calculate that whole whole with present value formula. With present value formula, yes. How do you calculate the price I doing? Present value 50 / 1 plus. The great rise to the first makes sense. 48 and I go here. And the sum of all these numbers. Suma, some of all these numbers will be the price. If the deal is 5%, price will be 1000 face value turn it. We are in a review. Listen, they. I mean, I’m not going to tell you what I’m going to ask in the example. This is I I’m telling her how to calculate duration formula or oh, you ask me. Oh, I’m telling you how to calculate duration formula, but instead of just taking the duration formula I’m putting. Yes, so so I’m showing you how to calculate it, but we have done 234 exercises regarding bomb pricing calculation and in order to and I have told you 3-4 times, you need to know how to calculate the price of a bomb. You need how to calculate present value formula. Saul has just asked me, oh, I want formulas. I have given you formulas, but the formula that I’m using is present value formula. So what is this? This is an exercise that show you how to calculate the price of a bone. But calculating the price of a bond is a must. What is a bond? Something that pays coupons? I don’t want you to spend 2 days working on. I don’t know what I have given you two exercises with answers, but today is not the day in order to go through all problem sets. Today what I’m doing is something simple that if you fully understand this, you won’t have any problem with the meter. If you fully understand this, you won’t have any problem. But if I ask you, sorry for what I’m going to say, what is the deal? And you ask me, you answer me back three years. Raleigh. You should don’t know what to do, but it’s too late for the meeting. But don’t worry, don’t worry. Or it’s not too late, but but what I mean is what is this calculating present value of a thing? What is a bond? This is a bond. And what you should know regarding a bond? What is coupon rate? What is the price, face value, the yield? Which one? Just just take it and then this is the sum and this is present value of 50 over this and and and I can serve this excel with you in the WASA group. I’m going to do it once I finish. I I will calculate. This is present value of the first. Yes. This is the sum. And now what I’m going to do, I’m going to calculate the average. 48 * 1. 48 * 147 * 2. Times 3 I’m gonna sum. These numbers, sorry suma because this is Spanish and the duration is going to do this over this that is 6.13. This is the duration. Yes, 6.13 years. Careful because if someone answer me what is duration and he say time, it will be incorrect. Why is written years there? Because I’m talking about interest rate sensitivity. And this means that the price will change when interest rate changes as much as a 6.13. Yep. So let me go quick. Examinar documentos. Bone. Pricing and duration. From bond pricing and duration, yes, and if I were you. If I were you. Let me I don’t know how to do 2 things at the same time. Comparising. If I were you, I will not try to understand everything without understanding each one of the steps. Calculating present value is absolutely important. Calculating net present value is absolutely important. And for me, what is really, really important is understanding the relationship between the rate. Present value. Rate and present value. Why? Because what happens if interest rates increases? What happens if interest rates increases? And now we need maths. This relationship is important. OK. Who asked me about relation formula? And let me go talk about this. This is time, yes. What’s your name? This is time. Yes, these are the coupons. The bond will pay. Bond will pay coupons. 50 EUR in one year, 50 EUR in two years. Face value is 1000 and you will have one coupon each year and last year you will have. Face value flag plus coupon. Make sense. These are coupons. What is? I’m not asking them, I’m just trying to explain. Yes, what is interest rate? It’s what Jerome Powell said and summarized. Interest rate is something more complex, but you should know what is interest rate or what have 50. Has to do with the beginning, but once it is been said, it speaks because this is called mixing call. What is interest rate? What Jerome Powell said and Jerome Powell can say I drop interest rate 25 basic points. I drop another 25 basic points. I have been talking about this during the whole course about interest rate and this is called monetary policy. Monetary policy is absolutely important in order in order to understand discourse, yes. So interest rates is 3%. The rate, the deal is 3%, yes. So I have two things. I have two things I have. Future guys close and I have that rate. There are two important questions and for me due to the the important question due to understand is not too lazy. One question that goes before. What is the price? What is the price? And the price is calculating present value of all future coupons. Calculating present value of all future of Google. You know how to calculate present value? Sure. You do that, that is taking future value and doing 1 + R rise to T and if you take each coupon. You will get present value of first coupon, present value of the second, present value of the 3rd and so once you add this you will get the price. In this case the interest rate 3% price will be 1124. OK. What if interest rate increases? Price will decrease, Yes, even this exercise, if interest rates increases to 5%, if interest rate increases to 5%, what would be the price? I’m receiving 5% of interest rates, so the price would be 1000. All of you all know that I wish all of you would understand this if interest rates were 5% and you are receiving a 5%. Percent and at the end you will receive 1000, but I should be 1000 makes sense. You know how to calculate the price? Yes, price. If you are here or the leader. If you are here, if you know what is careful because before being here I have say what happened if interest rate changes and you should calculate you you know how to use present value formula in order to calculate the present value of this. I will be happy. Yes. But I also want you to know what is the nature, because there is not only a meter, there is also final. Yes, and we will continue working on the ratio. What is the ratio? How much the price will change to our interest rate changes? Is there any value? But I don’t need you to know how to calculate derivatives. I want your attention. Four day. Careful. You should know what inflation for the meter. I’m talking about formulas, but you should know what inflation for the meter fully know and what inflation? How much the price will change when interest rate changes? And let me calculate it, yes. And what is the point that coupons matter? If there were no coupons, the longer maturity, the longer the maturity, the longer the duration. But because coupons matter. I should calculate the weight database. How much? How much these are? How much is this 48 over the price? Home match is how much are these 48 over the price? Let me calculate, yes. 48 over the price is. 4.3% yes. What do I have calculate the weight? How much this first coupon weight over the price? Are you following me? Let me repeat. Let me repeat. How do I calculate the price by summing or future cash flow? If I sum these numbers, I get this. How much this represent over the price? This over that there is a 4.31, yes. If I draft this. If I drag this I have tried. If I drag this I will get different weights. How much should be the sum of all these weights? So much the sum of all this weight should be. Let me answer the question in a different way. The sum of all these numbers means the sum of all these numbers, the sum of all these numbers, yes. The sum of all these numbers means 1000 inter price. I am calculating how much this represent over this, then how much this represent over that? Yes, what should be the sum of all these numbers? 100 percent, 100%. Why? Because because if I sum all these numbers, I get this and this is a 4%, this is a 4%, this is a 4% and this is 75%, yes. If I sum all this, the sum should be 100, yes. I’m so close. I want to see how much one represent over this. I am calculating the weighted average of future coupons. Yes, let me calculate. 4.31 * 1. And calculating this and the sum of this weighted average. Is duration, yes. This number and this is the same I’m calculating duration. Yes, what is duration? Who match is represent interest rate sensitivity? There is. If interest rates increases, if interest rate increases, what will happen with the price of both? Price will drop. In mine that can be solved. I wanted to follow up because you said that 3% is the deal. Maybe I’m confused. I thought the deal if the percentage of the bond that you get in each coupon and the interest rate. I mean there is. Yield is the yield is how much you are paying in rate terms and then you can there are different ways in order to name because you can calculate the yield per coupon. Then there is also the HPR on imperial return. And don’t worry because at the end, what is this 3%? What is this 3%? What is this 3% is a yield. And let me show you one thing if I write here minus the price. And I calculate I that in Spanish should be TIR of this, yes. This is the 3%, so the yield is the area and then. Yes. No, no, no, no. 5% is the right. Race and race will remain and change and you can consider you and if there’s rates. I don’t want because thinking about race, there could be a lot, a lot, a lot of confusion. But before going this confusion, I don’t want to. I just want you to fully understand this, how to calculate the price and what happens if interest rate savings. Let me go one step home. You have a bank. Let me call it silicon body bank. In less than one year, in less than one year, interest rate has increased more than 400 basis points. Make sense. And your clients need equity. Your clients need equity. What happens if interest rate has increased with the price of bonds you have in your balance sheet? The price goes down and if a lot of clients need liquidity, what you should do in order to get this liquidity? You should sell. Yeah, that’s what I’m saying. Knowing how interest rates work in practice is important. Knowing how interest rates works in practice is important. Any more questions? OK, let me four things. This is my let me present you my ChatGPT, yes. Ilos importantes. I have one folder. I paid the 20 euros. I pay 20 euros a month. I don’t know. So I don’t know what you could do without paying 20 euros. I don’t know if this what I’m showing you is premium or not, but nobody has asked me regarding this and because of that I cannot share. All the transcripts of all the classes now, but after the midterm, I don’t want to send you all the transcripts now because you are going to have just three days or two days. It’s on Wednesday, but I don’t have any problem in saying all the information that I have from this class. But I have one file for each class, each class. I have the transcript, I have summary. I don’t, I don’t care to share all the information with you. And now I don’t want to send all the information because it would be a an overload. Here it was important and let me show you where you are, where you are, where you are. Class summary, financial markets, yes. This is. Thanks. I have the transcript for the first class of financial markets. There are 26 sessions in total and I have students from different nationalities and this is the transcript, yes. This is first transcript. I have a file of all classes. I am showing you. Yes, hope. Oh, sorry. I don’t know if there is a quickly way in order to do this. This is the first class summary of first class classroom dynamics, technical, no computer available, but you learn into oh, there were. Do you remember the first day? There was no computer. Student diversity from US to learn from UK, from Asia, from Latin America, Mexico, use humor, personal, your keys, Vancouver, Coldplay, Skis, Cam, Netflix, Trump, Meloni to create rapport. What does rapport mean? Hey report it’s like. Whatever. Yeah, don’t worry. Then first thing I want is an obsidian. OK, here is the folder. Then let me go. Yeah, teachers law, finance from monetary policy. This class is session 10, week of October. Yes, from monetary policy, EPS stable markets bond. What cover what we cover admin mandates final exam 3rd of December at 8 midterm Monday 22nd breach from monetary policy spread 2008. Rates were the primary tool post 2008 beyond the silos we talk about it. EFS and we talk about stable coins and there was a discussion regarding liquidity. John, if I say your name, what you should say? Perfect. Market structure, supervision. Did I talk a little bit about? Who supervise each part of the system? Well, not in each class, but I have talked about market supervisor. Oh, this was the day that I talk about. I asked that DPP tell me about what are my career and students. There’s one. Where is the second one? You were too. One is missing. No FSC Korea, FSC Federal Security Commission. I don’t know if it is Federal Security Commission banking supervision. Efficient market hypothesis bonds 101. I don’t know what that’s 100 stands for. Definitions pricing formula. So this day was the day that I told told you about how to get the price of a bond and we did one exercise in class. Hedago keep news market instrument flow to answer use live examples on attendance taken verbally several names checked update energy a bit Monday low moves faster after bond example. This is like a deja B. What is my friend’s student? Oh, did Javi. How do you say something that you have lived before in French de jabu de jabu? Have you heard of de jabu? Dejabu. This is like a dejabu asking you something in France. A Monday that we go, we start sleeping. Then I do one exercise regarding a bone and we wake up. Explicity flag when AI outputs can be grown regulator list and yes assignments spread problems at one before next class rework next session plan interest rates, Macaulay modified duration convexity dollar value of a basic. Point Jill Kur, bootstrapping quick tie back to Silicon Valley Bank duration. Plus how many times do I have to talk about Silicon Valley Bank crisis? Several instructor reflections notes to serve. Oh, this is for myself. I have asked after it’s class for two things, one student guideline and another report for me, for myself. I don’t. I can’t say all things with you. Once you tell me, I will say earlier, how can you use AI to study? It’s always me. Not my girl. It’s yours. How can I use AI to teach? I’m showing you. Sorry, not I’m showing you. I’m learning. I told you the first day. This course is the first course that I am recording all my classes. You have this. I don’t care to share all what what I have though what I have done probably next course. What I will do is just in a daily basis. I will share all transcripts with my students, but I have just honest giving you a quick summary, a quick summary during the second part of the course. Probably I will share with you all transcripts. I will tell you how do I have it because I have the transcript. And then I have the summary of the transcript, yes, because at the end of the transcript, what I have is that the transcript recorded and what I’m doing is a summary of each transcript and I am recording this summary. And then what I have done is with this summary I have gone into chat DPP and I asked him please help me with the with updating last year exam. Among, Mark Williams. It did share the recap. Did share the I have no recap. I I said it and and you have much more information than. Well, then I’m happy to be alive. OK. You can download it. No, I cannot. I have. I have. I have download one. You cannot do it. Download. This is a second thing I can open it with. With notes, where is note with the block block data task. With this one you can open it and you will find something like this, yes. But why this is useful? Because what you can do. Oh, I’m so happy. I have already shared transcript with you. I’m absolutely happy. And what can you do with this? Let me Anya de Archivos, the file that I have. Don’t you? Look, this is the file that I have downloaded. Yes. So look here. This is the file I am uploading to ChatGPT the file, yes. Resume me the classic and English and those or tres. Linius. Yeah. This is formal. This is incredible. I mean, I am just discovered in this with you the first time I have told that GPT to make a summary from all one of my transfates, but this is what we were talking. We dedicated one day. I didn’t know what class was. But we dedicate one day to review market efficiency. Let me just go and with this I will finish. Who? Which? Estudiantes Estudieron Activo Sel classic. I have never asked this and I’m doing this in front of you because I want you to see how you can work with this. Probably I wouldn’t because active students comes through my eyes. I don’t need ChatGPT to know who you are. Who you are. If I yes, one name. Ohh El archivo does not mention Nombres concretos. I don’t care. I don’t. I don’t. Sorry, don’t care. I don’t believe that in one class I have not mentioned one of my students. OK. I have one problem with. I have already served some of the transcripts with you. I don’t care to do this in a systematic way, but today is not the day to talk about how to study with chattel. Today is the day regarding you to ask all questions you need to know for the meter and today is the day. I got your attention and I have talked about a war, a war that has to do with AI. This is important, yes. And we have 7, sorry, 7-4 elephants in the room, 4 important things you should think about. One is the magnificent sevens. One is the technology. One is that platform. Yes. Another one has to do with China. China that combines with technology and with all these things. Then another one is that. And another important thing is U.S. dollar. Yep. Good luck this Wednesday. We show each other here.