Formulas Revision Flashcards
1
Q
Variance
(With proba + with historical data)
A
2
Q
Simple Interest=
A
X(1 + rT)
3
Q
Future Value
A
X(1 + r)T
4
Q
Present Value (2)
A
DF * X
5
Q
Discount Factor
A
PV of $1
6
Q
Net Present Value
A
7
Q
PV Perpetuity
A
8
Q
PVp2 = value of a perpetuity paying C per year with first payment in T+1 years
A
9
Q
PV of an annuity: (3)
A
- PVp - PVp2
*
10
Q
PV of an annuity paid at the beginingof the year
A
PVa * (1 + r)
11
Q
PVp with growth
A
12
Q
PVa with growth
A
13
Q
Effective Annual Rate
A
14
Q
Effective Monthly Rate
A
15
Q
Continuous Compounding
A
Xer
16
Q
Continuous discounting
A
PV= Xe-rT
17
Q
Real interest rate
A
(1+r)/(1+pi)
i=real interest rate
r=nominal interest rate
𝜋(pi)=inflation rate
18
Q
Approximate Yield To Maturity
A
19
Q
Relationship formula YTM/PV
A