Big time clutch up here. You’re legendary for this.
@KrishanKumar-q4s7y2 күн бұрын
The savior!
@ASAFOAGYEIAMMISHADDAI3 күн бұрын
For the realized yield @28 mins example, the realized yield should be 5.72 ×2 =11.44
@lukemcelfresh3 күн бұрын
Yes, you are correct. The initial I/Y I solved for is incorrect. Thank you posting the correct solution.
@eduard-adrian47783 күн бұрын
53:40
@swaypapi16646 күн бұрын
i wish you made one for ch14 cost of capital lol i really need it for my final tomorrow
@rodoshihasan8974 күн бұрын
' LOL Is this Cornell final?
@AleynaDuramaz6 күн бұрын
Thank you so much from all binghamton students in finance. We all watch your videos and you have helped us tremendously. Thank you again for all your hard work.
@housanlaam9 күн бұрын
Thank you so much! Also, will you make videos of the subsequent chapters? These videos help me a lot
@annikairsalinda50409 күн бұрын
Thank you, very helpful.
@brittanywilliford542810 күн бұрын
You just saved my life oh my gosh. I have this chapter for my finance final exam but I could never comprehend it from my professor's lectures. This makes so much more sense. This likely just saved my grade. Thank you so much
@khalifamohammed605510 күн бұрын
out of all the previous chapters, this chapter was the most confusing for me
@lukemcelfresh10 күн бұрын
Thank you for the feedback...I'll try to make an updated version that can hopefully clear the confusion
@ultimateliamjohn179713 күн бұрын
If a questions say, "you can earn an interest rate of 0.3$ per month", would I multiply 0.3 by 12 months, as it doesn't exactly say that it COMPOUNDS monthly? If, for example, there are 10 years - the answer changes if I'm doing 0.3/ month for 120 periods compared to 3.6% per year for 10 years. Thank you.
@lukemcelfresh13 күн бұрын
If it says "per" month, it is giving you the monthly interest rate. You would keep the monthly interest rate and the monthly compounding periods (the .3/month for 120 periods). It is telling you that it compounds monthly by providing the monthly interest rate. Annualizing the rate and using the number of years would decrease the number of compounding periods...decreasing the future value amount. Hope this helps.
@AnfalAlSiyabi22 күн бұрын
thank you, the examples was helpful .
@mr.unknown412426 күн бұрын
Continue posting these you are changing the world by helping us.
@lukemcelfresh25 күн бұрын
I appreciate your kind words
@effystonem5130Ай бұрын
More power to you, Luke! Thank you for this :)
@EgorovaB-d2qАй бұрын
❤❤❤❤ can't leave you,thank u
@sahailhabibzadah8251Ай бұрын
i love you
@AlexanderThomasTravelsАй бұрын
The lecture is very good, but the ads are excessive! every 3rd minute almost.
@carrotdays9737Ай бұрын
thanks a lot.
@ratputiniii8690Ай бұрын
Thank you for all the help! I truly appreciate the hard work you put into these videos.
@Youssef-t3qАй бұрын
it is sad that you are very underrated💔
@godspeed265Ай бұрын
Clear, precise and to the point. Thank you very much! Your practice videos are top-notch as well!
@JonLaRose-j5yАй бұрын
Thank you 😊 🙏
@ultimateliamjohn1797Ай бұрын
Thank you. This course is brutal taking it online with no lectures. I'm in BC, but this content is still valid. Where are you teaching?
@lukemcelfreshАй бұрын
I am glad you are finding the videos beneficial.
@hamud350Ай бұрын
i love you
@amaleetruong9877Ай бұрын
Hi Luke, for question 8, why wouldn't you also add the 3 years from before you were given the money to the calculated 23.42 years (=26.42 years) before you reach your goal? Thank you in advance!
@lukemcelfreshАй бұрын
@@amaleetruong9877 you are correct. If they are asking for how many years from today, you would add 3 to the N calculation. Since the question is a little vague, I took it as how many years from your initial investment would it take...hence not adding the 3. Your understanding of the calculations is spot on.
@ManLikePoloАй бұрын
thanks
@MeetPatel-ri8udАй бұрын
Hey buddy, these videos are very helpful, and I would highly appreciate making videos on the next topics, like chapters 15, 16, and 17. They're really insightful videos. thank you.
@kushleenchhabra1110Ай бұрын
I guess the NPV for ques2 (Using NPV) should be 482,500 CFO= -925,000 C01= -37,500 F01= 1 C02= 289,000 F01= 5 I= 12.5 NPV = 482,500
@lukemcelfreshАй бұрын
Hello. Using the inputs you provided, the NPV should be -43,663. Please double-check how you are inputting things in the calculator.
@miguelno5321Ай бұрын
genuinely thank you for this
@miguelno5321Ай бұрын
goated
@isaaclefstein5025Ай бұрын
Your the GOAT for posting these videos! Helping me Ace my Finance Exams!
@lukemcelfreshАй бұрын
I am glad you have found them helpful!
@TheBoss-gr8gr2 ай бұрын
Hi Luke really enjoyed your video but am stuck at part 2nd of this question can you explain this cant understand it. Atlantis has been planning to develop a new warning system. The installation of the system costs more than what their budget allows so the mayor decides to issue a 20-year bond to finance the project. The bonds have a face value of $1,000 and it promises a coupon rate of 8.6% which will be paid quarterly to the bond holders. a) Calculate the price you have to pay to purchase the bond if i. The Yield to Maturity (YTM) is 7.5% (annually) ii. The Yield to Maturity (YTM) is 12.0% (annually) b) Let’s assume you would like to buy 50 bonds issued by Atlantis with a 20-year tenure. If the YTM is 8.6% and the coupon rate is 8.0%, calculate how much more you have to pay when you purchase a bond which makes annual coupon payments rather than quarterly
@lukemcelfreshАй бұрын
For part (b) you are solving for the price under two different payment options. For the quarterly payments, be sure to input the I/Y as quarterly (8.6/4) the N also (20*4) and the coupon (80/4). Solve for PV. Do the same PV calculation again, but with annual inputs (8.6, 20, 80). This will give you the per bond valuations. Subtract the two values and multiply by 50 (the number of bonds you are buying), to get the additional amount you would pay. Hope this helps!
@sharikbanipal11562 ай бұрын
great video, you will single handedly save my grade in Finance this semester
@lukemcelfresh2 ай бұрын
Great to hear!
@saranyabathey48512 ай бұрын
Thank you so much for this video. I have a better understanding and foundation in bonds and bonds valuation topic .
@lukemcelfresh2 ай бұрын
Glad it was helpful!
@saltedwounds162 ай бұрын
Thank you so much for this, it was really helpful 🙏
@sharikbanipal11562 ай бұрын
i was struggling with this chapter in my finance class. I saw this video and now i understand everything. YOU sir a hero
@ammishaddaiasafoagyei50512 ай бұрын
Hello Luke, In the monthly NPV calculation for Question 2, it says interest rate for 3 years is 24%. So why was the 24% considered as the yearly interest rate? Thus having r as 0.02. Should it not be 0.006 for 36 months.
@lukemcelfresh2 ай бұрын
In this case the interest rate is stated as an annualized rate. Unless it says "per" period, interest rates are quoted as an annual interest rate (a simple interest rate).
@ASAFOAGYEIAMMISHADDAIАй бұрын
@@lukemcelfresh great, I get it now.
@ammishaddaiasafoagyei50512 ай бұрын
Hello Luke, please in Question 9, why was the number of years multiplied by 4?
@lukemcelfresh2 ай бұрын
If it is quarterly compounding then the number of compounding period per year is 4. For the total number of compounding periods (N), you would multiply the number of years by 4.
@kathiravanelango24152 ай бұрын
Thank you so much for the lessons Luke.
@lukemcelfresh2 ай бұрын
I am glad you found them enjoyable!
@ratputiniii86902 ай бұрын
Thank you so much boss man
@lukemcelfresh2 ай бұрын
I am glad you found the video beneficial 👍🏻
@maithole91462 ай бұрын
Thank you so much, one of the best teachers ever🎉 your lectures help me so much
@lukemcelfresh2 ай бұрын
Thank you for your kind words...I am glad you have found the lectures beneficial
@marshallhodges60752 ай бұрын
Nice video
@lukemcelfresh2 ай бұрын
Thank you for your kind words
@RussellReviewerFJV5 жыл бұрын
How did you get 1,27.0525 for the current price? I've tried doing it out and on my financial calculator I kept getting 1,822.356
@lukemcelfresh5 жыл бұрын
If you use the same inputs as listed in the video, you should get the current price of $1,127.0525. Try resetting your calculator. Remember that the price is the present value of the future cash flows (fourteen years of annual coupons and the par value amount received at maturity) discounted back at the 5.2% required rate of return.