CF Practice

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Dicount Rate 12% 0 2.00 1 2.16 8% 1.93 2 2.33 8% 1.86 3 2.52 8% 35.27 25.11 4 32.75 4% 28.89

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Solved Excel formula

Transcript of CF Practice

Sheet1Dicount Rate12%02.0012.168%1.9322.338%1.8632.528%35.2725.11432.7525124%28.89

Sheet2Yield18.2%Initial Principle-1000Settlement1/1/00Intrest300Maturity1/1/02Intrest300Coupon rate12%Intrest300Price90Intrest300Redemption100Intrest300Frequency215.24%

Sheet3ProportionAnnualized ReturnStock 125%20%5.00%Stock 215%22%3.30%Stock 320%16%3.20%Bond 125%12%3.00%Bond 215%11%1.65%100%81%16.15%

MCQ 5Rf8%Market Risk Premium6%

StockExpected ReturnBetaCAPM ReturnA16.2%1.215.2%Under ValuedB12.4%0.913.4%Over ValuedC16.4%1.416.4%Correctly Priced

Sheet5Price113.6033845491136.03Yield14.00%Settlement1/1/006.8162030729Settlement1/1/00Maturity1/1/09Maturity1/1/05Coupon rate8%Coupon rate0Yield6%Price50.835Redemption1001000Redemption100Frequency1Frequency2