Quiz 2 Formula - ln FV PV n= ln (1 + r ) FV n 1 r = PV 1...

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() 1 0 12 0 2 ln 1 1 ln 1 1 NPV (1 ) ) ) ( in perpetuity) (growing perpetuity) (annuity of for n n n no n N N FV FV FV PV FV PV r PV r n PV r r C CC C rr r PV C PV PV C N =+ = = −= + + + + + ++ + == ⎡⎛ ⎜⎟ ⎡⎤ ⎢⎥ ⎛⎞ ⎝⎠ ⎣⎦ " g 11 periods with interest rate ) 1 log(1 ) ) 1 1 (annuity) ((1 ) 1) 1 1 nominal rate inflation rate real rate 1i n f l N N m N rC ) PV * r PV C C= N r ) APR FV C r EAR rm + =− + + + + = + = + nominal rate inflation rate ation rate ≈− ( ) 1/ ) ) coupon pmt(s) + price change(=Ending price-intial price)
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