1 Midterm Exam Formula Sheet

PVIFn,i

1
(1 i )- n
n
(1 i)

FVIFn,i (1 i )n

1
PVIFAn,i

1
1 - (1 i )- n
i

PVIFA - Duen,i

FVIFA n,i

1
1 - (1 i )- n (1 i )
i

PV FVe -in

1
(1 i )n 1
i

FVIFA - Duen,i

1
(1 i )n 1 (1 i )
i

(1 k t )t
ft
1
(1 k t -1)t -1
m

EIR 1 1
m

j 1

i
2

NAB Principal for front-end fees, discount interest and compensating balance.

Bond Equivalent Yield

FV - Price 365

Price
Term

YTM = kr + INF + MRP + LRP + DRP

Pzero

$FVn
(1 i n )n

HoldingPeriodReturn

Pbond

Pt Pt 1 Dt

Pt 1
Pt 1

1
$FV
1 (1 kd )n
kd
(1 kd )n

Holding Period Return

TP0 (1 g) TP1

k-g
k-g

Po
Payout Ratio

EPS1
k-g

C
C FV

(1 k1 ) (1 k 2 ) 2

Pbond $C

D
D

t
k
t 1 (1 k)

P
P

kn = kr + + kr

t 1

Pt Pt 1 Ct

Pt 1
Pt 1

D 0 (1 g) t D 0 (1 g) D1

k-g
k-g
(1 k) t

D1
g
P0

Po
Price

BVPS Bookvaluepershare