Unformatted text preview: this method is used when periodic cash flows are not the same each periodwhen future receipts are the same in each period, annuity table can be used. When semiannual, you double periods and halve the discount rate. Computing present value of a long term note or bondthis is a function of payment amounts, length of time until payments are made, and the discount bondex: issue a 5 year bondto find out the amount fo be paid, you must figure out series of interest payments (an annuty) and a single sum or the principal amount. ...
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 Fall '11
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 one year, 10 percent, 5 Year

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