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Unformatted text preview: FIN 3290 Exam Formula Sheet 1) PV = 2) FV n = CF *(1+r) n 3) PV(Annuity)] = 4) FV(Annuity) = 5) PV(Perpetuity) = 6) PV(Growing Perpetuity) = 7) PV(Growing Annuity) = = 8) FV(Growing Annuity) = = 9) PV(Annuity Due) = 10) FV(Annuity Due) = If m > 1 replace r with (r/m) and t with (t*m) in equations 1 – 10 and 16 below. Also CF must be CF per period. 11) Effective interest rate = - 1 m – the amt of times compounded yearly 12) Annual Percentage Rate = m* m is the frequency of interest payments per year 13) PV(Continuous Compounding) = C T *e-rt 14) FV(Continuous Compounding) = C *e rt 15) EAR(Continuous Compounding) = e rt -1 only annually solve for R*T first then press E then -1 Chapter 7 16) P(Bond) = + 17) YTM = r* + IP + MRP + DRP + LP where r* is the real rate, IP is inflation premium, MRP is maturity risk premium, DRP is default risk premium, and LP is liquidity premium. YTM is yield to maturity....
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