I wanted to make sure my thinking is on the right lines on this...
If it an annuity due then while calculating we always take N = no of periods -1 as the first payment is at t=0 and for an ordinary annuity N= number of periods??
I was a little confused after reading Schweser.. They had taken N=no of periods even for payments occuring at the beginning of the year and calculated the PV. They had then cacluated the PV(1+i) to get the right present value?
Am i getting something wrong here.. Can someone clarify? |