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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
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
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
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.
- Summer '09