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Unformatted text preview: It is easier to work with i (periodical interest rate) than I%YR (annual interest rate). Relabel I%YR button in calculator as i and use it as i . Relabel P/YR (payment per year) as P/Period (payment per period). The relabelling will help you determine the appropriate interest rate and time period in TVM calculation. (See example compounding multiple time per year). The formulae do not use the TVM convention of signing cash outflows negative and cash inflows positive. However, financial calculators and Excel do use the inflow/outflow convention. The formulae use real number (0.1); the calculator uses percentage (10). Use formulae for calculation of perpetuity, growing perpetuity, and growing annuity. Bond yield to maturity is nominal rate (APR) rather than effective rate. It is normal to be confused by this convention....
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 Winter '08
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