Unformatted text preview: mt 2)
Σ Pr n ( ) = bal ( pmt 2) − bal ( pmt1)
Σ Int ( ) = ( pmt 2 − pmt1 + 1) × RND( PMT ) − Σ Pr n ( ) where: RND = round the display to the number of decimal places
selected
RND12 = round to 12 decimal places
Balance, principal, and interest are dependent on the values of PMT, PV,
and pmt1 and pmt2. , Cash Flow
N NPV = CF0 + ∑ CFj (1 + i ) − Sj − 1 j =1 where: j ni
Sj = i =1 0 ∑ (1 − (1 + i)
i − nj ) j ≥1
j=0 Net present value is dependent on the values of the initial cash flow (CF0),
subsequent cash flows (CFj), frequency of each cash flow (nj), and the
specified interest rate (i).
IRR = 100 × i, where i satisfies npv( ) = 0
Internal rate of return is dependent on the values of the initial cash flow
(CF0) and subsequent cash flows (CFj).
i = I % ÷ 100 Appendix A: Reference Information 73 Bonds
Price (given yield) with one coupon period or less to redemption: 100 × R RV + M − A × 100 × R PRI = DSR Y E
M × 1 + M E where: PRI
RV
R
M =
=
=
= DSR =
E = Y = A = dollar price per $100 par value
redemption value of the security per $100 par value
(RV = 100 except in those cases where call or put
features must be considered)
annual interest rate (as a decimal; CPN _ 100)
number of coupon periods per year standard for the
particular security involved (set to 1 or 2 in Bond
worksheet)
number of days from settlement date to redemption date
(maturity date, call date, put date, etc.)
number of days in coupon period in which the settlement
date falls
annual yield (as a decimal) on investment with security
held to redemption (YLD P 100)
number of days from beginning of coupon period to
settlement date (accrued days) Note: The first term calculates present value of the redemption amount,
including interest, based on the yield for the invested period. The second
term calculates the accrued interest agreed to be paid to the seller.
Yield (given price) with one coupon period or less to redemption: RV R PRI A R + −
+ × 100 M 100 E M M × E =
Y × DSR PRI A R + × 100 E M Price (given yie...
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 Summer '09
 PETRY

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