Yield given price with more than one coupon period to

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Unformatted text preview: ndix A: Reference Information Statistics (Formulas apply to both x and y.) Standard deviation with n weighting ( x): ( ∑ x)2 1/ 2 ∑ x2 − n n Standard deviation with n 1 weighting (s x): ( ∑ x)2 1/ 2 ∑ x2 − n n −1 Mean: x = ( ∑ x) n Linear Regression Formulas apply to all regression models using transformed data. b= a= r= n( ∑ xy ) − ( ∑ y )( ∑ x ) n( ∑ x 2) − ( ∑ x ) 2 (∑ y − b ∑ x) n bσx σy Interest Rate Conversions EFF = 100 × (e C / Y where: x = .01 × ln ( x + 1) − 1) NOM P CàY NOM = 100 × C / Y × (e1 ÷ C / Y where: x = .01 × ln( x + 1) − 1) EFF Appendix A: Reference Information 77 Percentage of Change %CH # PD NEW = OLD 1 + 100 where: OLD NEW %CH #PD = old value = new value = percent change = number of periods Profit Margin Gross Profit Margin = Selling Price − Cost × 100 Selling Price Breakeven PFT = P Q − ( FC + VC Q) where: PFT P FC VC Q = profit = price = fixed cost = variable cost = quantity Days between Dates With the Date worksheet, you can enter or compute a date within the range January 1, 1950, through December 31, 2049. 78 Appendix A: Reference Information Actual/actual day-count method (assumes actual number of days per month and actual number of days per year): DBD (days between dates) = Number of days II Number of days I Number of Days I = (Y1 YB) 365 + (number of days MB to M1) + DT1 (Y 1 − YB) + 4 Number of Days II= (Y2 YB) 365 + (number of days MB to M2) + DT2 (Y 2 − YB) + 4 where: M1 DT1 Y1 M2 DT2 Y2 MB DB YB = month of first date = day of first date = year of first date = month of second date = day of second date = year of second date = base month (January) = base day (1) = base year (first year after leap year) 30/360 day-count method (assumes 30 days per month and 360 days per year): DBD = (Y 2 − Y 1) × 360 + ( M 2 − M 1) × 30 + ( DT 2 − DT 1) where: M1 DT1 Y1 M2 DT2 Y2 = month of first date = day of first date = year of first date = month of second date = day of second date = year of second date Note: If DT1 is 31, change DT1 to 30. If DT2 is 31 and DT1 is 30 or 31, change DT2 to 30; otherwise, leave it at 31. Source for 30/360 day-count method formula: Lynch, John J., Jr., and Jan H. Mayle. Standard Securities Calculation Methods. New York: Securities Industry Association, 1986. Appendix A: Reference Informatio...
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