MTcheat - PV=C/(1+r)^n FVn=PV(1+r)^n Find C...

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PV=C/(1+r)^n Mortgage Payoff Growing Annuity FV n =PV(1+r)^n PV=C/r(1-1/1+r)^n PV=(C/r-g)(1-(1+g/1+r)^n) Find C Balloon Payment EAR=(1+APR/k)^k-1 C=(1/r)(1-1/1+r^n) X=(P-C/r(1-1/1+r^n))(1+r)^n C=P/Ans Real Interest Delayed Inv. (Bill Clinton) Royalties (DI+Royalties) R r = r-i/1+i=r-I npv=C 0 -C 1 /1+r^n(1-1/1+r^n) PV r =C/e r -(r roy ) PV roy =PV r /1+C/e r PV roy =NPV+PV roy Short and long term int. NPV=P+C/r-g Same Discount r=UK (1.01)(1.02)=r 1 C/r-g = C/r-g (1.01)(1.02)/2=r 2 Sales+COGS=GrossP NWC=Ca+Inv+Rec+(-Pay) ni+oh(Atax)+dep-capex-P 0 =fcf +Tax=Net income +Dep-Capex-^NWC=FCF Zerocoupon bond 1+YTM n =(FV n /P) 1/n
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r(up) bond P(down)=Int. rate risk Default risk=issuer cant meet obligation Zero coupon bond Discount or Prem of CouB CPN=Coup% x FV/#CPmts annually P=FV/(1+YTM n ) n P(10%)=10/y(1-1/1+y n +FV/1+y n YTM of Coupon Bond YTM n =(FV/P) (1/n) -1 P(5%)=5/y(1-1/1+y n +FV/1+y n P=(CPN/y p )(1-1/1+y p n )+FV/1+y p n R=Return Price after Price before P R =Probability (CPN/y n-p )(1-1/1+y
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This note was uploaded on 09/08/2010 for the course BUS 173A at San Jose State University .

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MTcheat - PV=C/(1+r)^n FVn=PV(1+r)^n Find C...

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