Chapter 2 Flashcards
1
Q
PV single CF
A
2
Q
FV
A
FV = PV ( 1 + r ) ^ t
3
Q
PV and FV
continuous compound rate
A
4
Q
Fixed Coupon Bond
If coupon = Yield
A
Bond trade at par
5
Q
Fixed Coupon Bond
If coupon > yield
A
Trade above par
6
Q
Fixed Coupon Bond
If coupon < yield
A
Trade at discount to par
7
Q
PV of Perpetuity
A
Pmt / r
8
Q
Preferred Stock Value
A
Dividend (Dp) / mrk req return on preferred stock (Kp)
9
Q
Gordon Growth
A
10
Q
Multistage Growth
A
11
Q
PE ratio
A
12
Q
Gordon Growth Ke =
A
13
Q
Gordon Growth Gc=
A
14
Q
PV Coupon Bond
A
15
Q
Finding r
A
17
Q
Forward Rate
A
(1) Calculate Sport Rate
= End / Price start - 1
18
Q
Exchange Rate
A
19
Q
Hedge Ratio
A
20
Q
What is implied foward rate for Y2 (F1,1) at end of May and June ?
May PV (1y) = 98.028
May PV (2y) = 95.109
June PV(1y) = 97.402
June PV (2y) = 93.937
A
