标题: values for calculator [打印本页] 作者: SWASH 时间: 2011-7-11 18:34 标题: values for calculator
a 6 year amortizing security par value 100 coupon 4% ,expected cash flow per year 4% coupon + some amount say 12 total expected cf = 16. discount rate 5%. i am able to solve correctly using the formula 16/1.05^1....... and so on.
what values do i put in the calculator for the same?unable to solve using calc.作者: ramdabom 时间: 2011-7-11 18:34
based on info given:
n = 6
FV = (100)
PMT = (16)
YTM = 5
CPT PV作者: jim8z3 时间: 2011-7-11 18:34
nope i am not getting the answer.have tried it already作者: hariRaj 时间: 2011-7-11 18:34
what's the answer btw? I solved it and could explain, just making sure I'll be explaining the right thing
Btw, if you use Excel it might be easier IMHO作者: siavosh 时间: 2011-7-11 18:34
its a hypothetical Q. havent solved it.its similar to a prob in CFAI text. i could solve it using the formula but not the calculator. wanted to know what value to put in which field. and excel isn't allowed in exam so not using作者: suyash1989 时间: 2011-7-11 18:34
Based on info provided, only way to do it was what I told you ..
I guess you are doing something wrong with formula: dividing last factor by n = 7 not 6
Show me excel work to know whats the problem
Omar作者: bluejazzy 时间: 2011-7-11 18:34
confused2010 Wrote:
-------------------------------------------------------
> nope i am not getting the answer.have tried it
> already
Does this mean you are getting an error or an incorrect answer?
If you compute like Omar said,
n=6 FV=-100 PMT=-16 i=5 you get PV=155.83261作者: RobertA 时间: 2011-7-11 18:34
I'm not sure if posting the actual text is ok or not, but you could tell us the book and page, some of us have the 2010 material, we took level 1 in June ;)作者: agulani 时间: 2011-7-11 18:34
page 402,volume 5, reading 64, practice problem 1 part B.作者: studyn 时间: 2011-7-11 18:34
Btw, I think you wrote you'll study FI and Quant together? Have you finished readings 5 and 6 from Quant?
If not, it might be a good idea to spend one or two days on those and come back to FI afterwards, this type of questions will come more naturally to you once you've read that.
FI can be done before Quant, but time value of money and discounted cash applications are used throughout FI valuation, if this is new to you reading up on these - even in the CFAI books () they are less than 100 pages - will help in my opinion.
) they are less than 100 pages - will help in my opinion.