标题: CFAI MOCK am test strong family [打印本页] 作者: luckygiftvn 时间: 2013-4-3 16:47 标题: CFAI MOCK am test strong family
yo, i am looknig at band of interest problem 28. since when do we use annuities for mortgage rates? i know that BOI is like a WACC but i never remember seeing monthly compounding for a loan. am i wrong? am i losing it?
Those scientists better check their hypotenuses, dude!作者: Jolyn 时间: 2013-4-3 16:51
BOI method is like wacc (except Cost of debt has no interest shield). also, you need to add a sinking fund factor to the cost of debt before you multiply by the weight. That is found using your NPV function in you calc with monthly compounding.
