Future value fv - Study guides, Class notes & Summaries

Price change based on convexity - -duration(change in yield)+1/2(convexity)(change in yield)^2 Effective Duration - Required if a bond has embedded options: [(v-)-(v+)]/[2V0(change in curve)] Modified Duration - [(v-)-(v+)]/[2V0(change in yield)] Future Value - PV(1+(I/Y)^N) PV - FV/(1+r)^n PV of perpetuity - PMT / discount rate Approximate percentage price change of a bond - (-)(modified duration)(ΔYTM) Nominal Risk Free - Real Risk Free + expected inflation Required Return - Nominal r...

CFA Level 1: Quantitative Methods Test || With 100% Accurate Solutions CFA Level 1: Quantitative Methods Test || With 100% Accurate Solutions What do I use when I want to assign every member of a group of size n to n slots? - ANSWER - n factorial. What do I use when I want to count the number of ways to apply one of three or more labels to each member of a group? - ANSWER - Multinomial. What do I use when I want to count the number of ways I can choose r objects from n, when the order ...

MISY 5325 Excel Midterm Ultimate Review with Complete Solutions Pressing the Ctrl key is required to select cells or ranges of cells that are not adjacent. To relocate a chart to another worksheet, users should employ the function **move chart**. If entered correctly, the functions SUMIF and DSUM will produce the same result. Which cell reference remains unchanged when formulas are copied and pasted into other cells? $A$1 (Absolute Reference) Which statement regarding the Ta...

RATE - calculates the interest rate earned for an investment given the number of payments made as part of the investment, the payment amount, and the current value of the investment. (nper, pmt, pv, [fv], [type], [guess]) =RATE(Number of Payments, Monthly Payment Amount, Loan Amount)*12 EFFECT - calculates the annual percentage rate for an interest rate given the number of times per year that interest is charged. (nominal_rate, npery) =effect(Interest Rate, Number of Payments per ...

RATE - ANSWERScalculates the interest rate earned for an investment given the number of payments made as part of the investment, the payment amount, and the current value of the investment. (nper, pmt, pv, [fv], [type], [guess]) =RATE(Number of Payments, Monthly Payment Amount, Loan Amount)*12 EFFECT - ANSWERScalculates the annual percentage rate for an interest rate given the number of times per year that interest is charged. (nominal_rate, npery) =effect(Interest Rate, Number of...

DCF Schedule – Important Dates In order to properly discount cash flows to the present value, we must consider the timing of when those cash flows occur. Which of the following is not one of the important dates when creating a DCF valuation? Review Later Cash Flow Timing Fiscal Year End Reporting Date Valuation Date 2 Time Quantity of Money As an analyst, it’s important to understand how invested cash flows compound into the future, as well as calculate the present value of a f...

Seg Mock Exam 4 Questions and Answers 100% Solved Barb is currently working at KatCorp and has just received a job offer from another company. She is worried that changing jobs will mean losing her RPP. She has been at KatCorp for 20 years and she does not want to lose her retirement savings. When she meets with her advisor, he tells Barb that she has several options. Which of the following is not an option for Barb? a) Leave her RPP with KatCorp, allowing it to continue to grow b) Move her ...

Price change based on convexity CORRECT ANSWER -duration(change in yield)+1/2(convexity)(change in yield)^2 Effective Duration CORRECT ANSWER Required if a bond has embedded options: [(v-)-(v+)]/[2V0(change in curve)] Modified Duration CORRECT ANSWER [(v-)-(v+)]/[2V0(change in yield)] Future Value CORRECT ANSWER PV(1+(I/Y)^N) PV CORRECT ANSWER FV/(1+r)^n PV of perpetuity CORRECT ANSWER PMT / discount rate Approximate percentage price change of a bond CORRECT ANSWER (-)(modified...

What is the time value of moneyrefers to the observation that it is better to receive money sooner than later Future Value Versus Present ValueFuture value is compounding, present value is discounting Future Value of a Single Amountthe value in future dollars of some cash flow today The Equation for Future ValueFV=PV(1+r)^n -FV(n)= future value or payoff after n periods -PV(0)= initial principal or present value -r= per period compound rate of interest -n= number of periods that the m...

§Perpetuity FORMULA - •PV = PMT/I §Sharpe Ratio FORMULA - •(Return - risk-free rate) / standard deviation §CAPM FORMULA - •ri = rRF + (rM - rRF)bi What is the time value of money? - The concept that money you have now is worth more than the identical sum in the future due to its potential earning capacity. §Why is inflation so important for cash flows? - Important for inflation, a dollar is worth more today than in the future due to interest rates increasing. HOW DOES COMPOUNDIN...