Session1-2 - FMP - Present value Discount Rates N Years...

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Present value 100 Discount Rate 6% Nº Years 5 Future Value: 133.82 Present value 50 eur Discount Rate 5% Nº Years 4 Future Value: 60.78 Future value 100 Discount Rate 6% Nº Years 5 Present Value 74.73 It is also called the discounted cash flow rate of return (DCFROR) or simply the rate of return (ROR In the context of savings and loans the IRR is also called the effective interest rate. 30-year Bond 100,000,000.00 Price 112.09% Coupon 4.75% IRR (TIR): 4.05% 0 -112,090,000.00 1 4,750,000.00 2 4,750,000.00 3 4,750,000.00 4 4,750,000.00 5 4,750,000.00 6 4,750,000.00 7 4,750,000.00 8 4,750,000.00 9 4,750,000.00 10 4,750,000.00 11 4,750,000.00 The internal rate of return ( IRR ) is a rate of return used in capital budgeting to measure and com Notional = Face Value = Principal
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12 4,750,000.00 13 4,750,000.00 14 4,750,000.00 15 4,750,000.00 16 4,750,000.00 17 4,750,000.00 18 4,750,000.00 19 4,750,000.00 20 4,750,000.00 21 4,750,000.00 22 4,750,000.00 23 4,750,000.00 24 4,750,000.00 25 4,750,000.00 26 4,750,000.00 27 4,750,000.00 28 4,750,000.00 29 4,750,000.00 30 104,750,000.00 IRR(TIR): 4.05% 30-year Bond REALISTIC DATES 100,000,000.00 Price 112.09% Coupon 4.75% XIRR(TIR): 4.09% 15/09/2009 -112,090,000.00 04/07/2010 4,750,000.00 04/07/2011 4,750,000.00 04/07/2012 4,750,000.00 04/07/2013 4,750,000.00 04/07/2014 4,750,000.00 04/07/2015 4,750,000.00 04/07/2016 4,750,000.00 04/07/2017 4,750,000.00 04/07/2018 4,750,000.00 04/07/2019 4,750,000.00 04/07/2020 4,750,000.00 04/07/2021 4,750,000.00 04/07/2022 4,750,000.00 04/07/2023 4,750,000.00 04/07/2024 4,750,000.00 http://www.b Notional = Face Value = Principal
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04/07/2025 4,750,000.00 04/07/2026 4,750,000.00 04/07/2027 4,750,000.00 04/07/2028 4,750,000.00 04/07/2029 4,750,000.00 04/07/2030 4,750,000.00 04/07/2031 4,750,000.00 04/07/2032 4,750,000.00 04/07/2033 4,750,000.00 04/07/2034 4,750,000.00 04/07/2035 4,750,000.00 04/07/2036 4,750,000.00 04/07/2037 4,750,000.00 04/07/2038 4,750,000.00 04/07/2039 104,750,000.00 XIRR(TIR): 4.09% 30-year Bond REALISTIC DATES XNPV 100,000,000.00 Price 112.87% Coupon: 4.75% Discount Rate: 4.05% XNPV 112,874,149.42 15/09/2009 0.00 04/07/2010 4,750,000.00 04/07/2011 4,750,000.00 04/07/2012 4,750,000.00 04/07/2013 4,750,000.00 04/07/2014 4,750,000.00 04/07/2015 4,750,000.00 04/07/2016 4,750,000.00 04/07/2017 4,750,000.00 04/07/2018 4,750,000.00 04/07/2019 4,750,000.00 04/07/2020 4,750,000.00 04/07/2021 4,750,000.00 04/07/2022 4,750,000.00 04/07/2023 4,750,000.00 04/07/2024 4,750,000.00 04/07/2025 4,750,000.00 04/07/2026 4,750,000.00 04/07/2027 4,750,000.00 04/07/2028 4,750,000.00 Notional = Face Value = Principal
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04/07/2029 4,750,000.00 04/07/2030 4,750,000.00 04/07/2031 4,750,000.00 04/07/2032 4,750,000.00 04/07/2033 4,750,000.00 04/07/2034 4,750,000.00 04/07/2035 4,750,000.00 04/07/2036 4,750,000.00 04/07/2037 4,750,000.00 04/07/2038 4,750,000.00 04/07/2039 104,750,000.00
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R).[1] pare the profitability of investments.
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Session1-2 - FMP - Present value Discount Rates N Years...

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