Finance Chapter Seven

Present Value

face value/ (1+r)^t
Annuity Present Value

C x (1-1/(1+r^t))/r
Total Bond Value?

Present Value + Annuity Present Value
Yield To Maturity?

Price = C x (1-1/(1+r^t))/r + FV/(1+r^t) ... solve for r ...
Tax Vs. Municipal?

Taxable Bonds Rate x (1-t) = Municipal Bonds Rate
Fisher Effect?

1 + R = (1 + r) x (1+ h)
Inflation and Present Values?
- Withdrawal x (1+r^t) = C1... then... C1/(1+r)
- Do repeatedly for each year.

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Finance Chapter Seven

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Finance Chapter Seven

Updated

2010-03-06T20:09:45Z

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