MC: Time Value Of Money Pt. 1 Flashcards
(9 cards)
1
Q
Annualized coupon rate is what to par?
A
A percentage of par
2
Q
What is Par value typically?
A
100
3
Q
Annualized means ________ rates.
A
Stated
4
Q
Time Period Return X Periods = ____
A
Annualized stated rates
5
Q
How to find principal and interest breakdown in TVM on calculator?
A
2nd [PV]
* P1 is start period
* P2 is end period
6
Q
PV of constant perpetuities?
Example of type of constant perpetuity?
A
Equity is an example.
7
Q
PV calculation of security with growth in payments in perpetuity.
A
8
Q
How can Gordon growth model be rearranged?
A
9
Q
How can Gordon growth model be used for P/E ratio?
A
