Liabilities (Bonds and leases)

Question 1

What is the -PV formula?

Answer 1

=-PV(market rate; number of periods; (PMT = face value*interest rate);face value

Question 2

When making your table of interest payments (before the amortization table) what is the formula used to calculate each periods extra interest?

Answer 2

=interest payment/(1+market rate)^nr. of period

Question 3

When do you use the -PV formula?
Lease amortization or issuance of Bonds?

Answer 3

Issuance of bonds!
Lease amortisation requires the:

interest payment/(1+market rate)^nr. of period

and then add them up to find the total.