equationd you need to memorise Flashcards
1
Q
bond price
A
P= (C / YTM) x (1- (1 / (1 + YTM) ^t ) + FV / (1 + YTM) ^t
2
Q
coupon payment
A
C = FV x (r / m)
3
Q
Simple interest
A
SI = PV x r x t
4
Q
Simple interest including principle
A
SI = PV x (1 + r x t)
5
Q
Interest on Interest
A
IOI = FV - PV - SI
6
Q
Arithmetic mean
A
Ṟ = ( R1 + R2 + R3 +…. Rt ) x (1 / t)
7
Q
Geometric mean
A
Rg = [(1 + R1) x (1 + R2) x (1 + R3) …. (1 + Rt)] ^(1 / t) -1
8
Q
Depreciation
A
CAPEX / useful life
9
Q
Book value
A
= CAPEX - Accumulated depreciation
10
Q
% change in price
A
= ( P1 - P0 ) / P0
11
Q
real interest
A
= [(1 + nominal interest) / (1 + inflation)] - 1
12
Q
accumulated depreciation
A
= depreciation x years that its been used
13
Q
Holding Period Return HPR
A
HPR = [( P1 - P0 ) / P0 ] + ( D / P0 )
14
Q
Tax shield
A
= interest paid x tax rate
15
Q
Weighted equity
A
We = Equity / ( Equity + Debt )
