Ch.4 Flashcards
1
Q
Simple Present Value Formula
A
FV over (1+Interest Rate)^years
2
Q
If you see “present value of a security that pays you 1,150 this year, 1,200 the next…” which formula do you use
A
Simple Present Value with The Payments as the Cash Flows/Numerator
3
Q
When Coupon Rate is equal to Yield of Maturity
A
Price equals Face Value
