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# 4000 c03 f03 400000 100 34 chapter 3 using the

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Unformatted text preview: third cash flow. C03 = Delete third cash flow. C03 Move to second cash flow. C02 = 5,000.00 C02 = F02 = 4,000.00 1.00 C03 = F03 = 5,000.00 4.00 Insert new second cash flow. X 4000 Move to next cash flow to verify data. Chapter 3: Using the Cash Flow Worksheet 4,000.00 0.00 35 Example: Computing the Net Present Value Compute the net present value (NPV) using an interest rate per period ( ) of 20%. Procedure Keystrokes Access NPV portion of Cash Flow worksheet. ( = 0.00 Enter interest rate per period. 20 = 20.00 Compute net present value. Display NPV = 7,266.44 Example: Computing the Internal Rate of Return Compute the internal rate of return (IRR). Procedure Keystrokes Display Access IRR portion of Cash Flow worksheet. IRR = Compute internal rate of return. IRR = 0.00 52.71 The internal rate of return is 52.71%. 36 Chapter 3: Using the Cash Flow Worksheet CHAPTER 4 Using the Bond Worksheet To access the Bond worksheet, press l. Press and to move through the worksheet to display the different variable labels. Bond Worksheet Labels Label Meaning Type of Variable SDT Settlement date Enter-only CPN Annual coupon rate in percent Enter-only RDT Redemption date Enter-only RV Redemption value (percentage of par value) Enter-only ACT* Actual/actual day-count method Setting 360* 30/360 day-count method Setting 2/Y* Two coupons per year Setting 1/Y* One coupon per year Setting YLD Yield to redemption Enter/compute PRI Dollar price Enter/compute AI Accrued interest Auto-compute * Press repeatedly to view the options for day-count method or coupons per year. Notes about the Bond Worksheet sets RV to 100 and CPN, YLD, and PRI to zero. (SDT, RDT, daycount method, and coupon frequency are not affected.) sets SDT and RDT to 12-31-1990; RV to 100; day-count method to ACT; coupon frequency to 2/Y; and CPN, PRI, and YLD to zero. If you have not entered the necessary values, an error occurs when you press or to move through the worksheet. You can enter dates in either U.S. format (MM.DDYY) or European format (DD.MMYY). Dates are displayed with hyphens, either MM-DD-YYYY (U.S. format) or DD-MM-YYYY (European format). You can enter dates from January 1, 1950, through December 31, 2049. When you enter a value for CPN, remember that it is the annual coupon rate as a percen...
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## This homework help was uploaded on 04/03/2014 for the course ECON 203 taught by Professor Petry during the Summer '09 term at University of Illinois, Urbana Champaign.

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