Extra Formulas Flashcards
What is the bank discount yield formula?
BDY = ($ Discount / Face value) x (360/days to maturity)
What is the holding period yield formula?
HPY = (change in price + div) / Price bgn
What is the equivalent annual yield formula?
EAY = (1+HPY)^(365/t) - 1
What is the money market yield formula?
MMY = (360 x bank discount return) / (360 - (t)(bd return)
What is the covariance formula?
Covar = (Prob of AB)(DevA)(DevB)
P(AB) formula
P(A | B) x P(B)
P(A or B) formula
P(A) + P(B) - P(AB)
P(A | B) formula
P(AB) / P(B)
Independent probability formula changes
P(A | B) = P (A) or vice versa
Bayes formula?
P(Event | Info) = P(Info | Event) x P(Event) / P(Info)
What is the national income formula?
Y = C + I + G + (X - M)
What is the sustainable growth rate formula?
Sus Grow = ROE x (1 - payout ratio)
Cash conversion cycle formula?
Cash conv. = DIO + DSO - DPO
Debt-to-Capital formula
DtC = Debt / Debt + SH Equity
DOL formula?
DOL = % change in Op income / % change in units sold
Operating cycle formula?
Op Cycle = DIO + DRO
DFL Formula?
DFL = % change in net income / % change in op income
Bond equivalent yield?
BEY = (FV-PP / PP) x (360/days to maturity)
Beta formula?
Beta = Covariance of asset and market return / Variance of market return
Put Call Parity formula?
P-C-P = S + P = C + x/(1+r)^t
Formula to convert to periodicity?
(1 + APR/m)^m = (1 + APR/n)^n
PV Banker acceptance formula?
PVBA = 100 x (1 - days/year x DR)
What is the modulation duration formula?
ModDur = MacDur / (1+r)
