Exam 1 - formulas Flashcards
1
Q
Actual Discount =
A
Interest x n/360 x par value
2
Q
P=
A
Par Value - Dollar Discount
3
Q
Bond Equivalent Yield=
A
Par Value - P 365
——————- x ——— = BEY
P N
4
Q
Equivalent Taxable Yields (Municipal Bonds Formula)
What to do with the answer? x 100 to make it a percentage
A
r (tax Excempt)
——————— = Rtaxable
(1 - Tax Rate )
What to do with the answer? x 100 to make it a percentage
5
Q
Dividend Yield =
A
Dividend / P buy
6
Q
Capital gain Yield
A
P buy
7
Q
Total Return for the Equity Example
A
Dividend yield + capital gain yield
8
Q
How to determine if you will receive a margin call?
A
Value of Share (assets)
