formula sheet-test

# formula sheet-test - every year, multiply these present...

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Exam Material Formulas Compounding and Discounting annuity growing year - T of Value Present r g g r C PV annuity year - T of Value Future r r C FV annuity year - T of Value Present r r C PV perpetuity growing of Value Present g r C PV perpetuity of Value Present r C PV r CF flows cash multiple of Value Present r CF r CF r CF CF PV g compoundin continuous for EAR Calculate 1 - e r Rate Annual Effective Calculate 1 - m r 1 r Value Present r FV PV Value Future r) PV(1 FV T T T T T t t t t T T T q EAR m SAR EAR t t t t + + = + = + = = = + = + + + + + + + = = + = + = + = = 1 1 1 1 ) 1 ( ) 1 ( 1 1 ) 1 ( ) 1 ( ..... ) 1 ( ) 1 ( ) 1 ( 0 0 0 0 0 2 2 2 1 1 1 0 Note: In these last five formulas, the payments are made at the end of every year, with the first payment one year from today. If instead the payments are made at the beginning of

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Unformatted text preview: every year, multiply these present values by (1 + r ). Bond Valuation yields Bond y F C y C y C PV r F r r C Value Face-F coupon,-C valuation, Bond r F C r C r C PV T T T T ) 1 ( ...... ) 1 ( ) 1 ( ) 1 ( ) 1 ( 1 1 ) 1 ( ...... ) 1 ( ) 1 ( 2 1 2 1 + + + + + + + = + + ⎥ ⎦ ⎤ ⎢ ⎣ ⎡ + − = + + + + + + + = Nominal Rate and Real Rate ) 1 )( 1 ( ) 1 ( h r R + + = + Fisher Effect. h r R + = An approximation of the Fisher Effect...
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## This note was uploaded on 04/15/2008 for the course FINA 3313 taught by Professor Yong during the Fall '08 term at UT Arlington.

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formula sheet-test - every year, multiply these present...

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