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@stevewilson55705 күн бұрын
Thank you!
@funkyfunnyshortsАй бұрын
What determines the I/y
@Snowaxe3D4 ай бұрын
Insted we should use PVIFA for calculating the Annuity of each year, and then for last year we can use PVIF
@bruhpixanocu Жыл бұрын
Hey how to calculate the present value of a bond that pays cupon that has a face value of 10 USD , pays a semi annual prize of 0.4 USD , has a annual yield of 2% and a maturity of 1 year and 2 months? My question is how to calculate the present value if we have months in the equation. Thanks for your video.
@RyanOConnellCFA Жыл бұрын
For this one, I think you could enter this depending on your financial calculator: Enter: N (number of periods) = 2.333, I/Y (yield per period) = 1% (since it's semi-annual), PMT (payment per period) = 0.4, FV (future value or face value) = 10. Then, compute for PV (present value). PV = 10.6885
@faithzulu1937 Жыл бұрын
😊
@romitbarat2 жыл бұрын
Hey Ryan, what financial calculator is preferred for CFA?
@RyanOConnellCFA2 жыл бұрын
Hello Romit, my favorite of all the allowed financial calculators is definitely the Texas Instruments BA II Plus
@rogerfederer95239 ай бұрын
shouldn’t the interest per year be 5 %, since the bond pays 50 dollars annually, which is 5 % from 1000USD?
@RyanOConnellCFA9 ай бұрын
The coupon rate is 5% per year. The interest rate (or YTM) depends on the interest rates in the market for bonds of similar risk. The only time the interest rate (YTM) matches the coupon rate is for bonds sold at par
@rogerfederer95239 ай бұрын
@@RyanOConnellCFA so what does YTM actually tell us? that it’s the market interest rate of similar risk bonds that we compare to ours?
@thecalculatorking50878 ай бұрын
@@rogerfederer9523 that's correct. You bought a bond at a point in time in the past when the interest provided was 5%. Now, the rate has changed
@RyanOConnellCFA5 ай бұрын
That is right!
@hillaryhamson86084 ай бұрын
Hey can this be calculated on an excel sheet?
@AnilMgr-fx5sb4 ай бұрын
yes it can be
@pandorayim Жыл бұрын
Hi Ryan, Where is %4 is coming ? I mean how market decides 4 % return for this bond ?
@RyanOConnellCFA Жыл бұрын
The pricing is determined by supply and demand. You can think of it the same way as the price of a stock is determined. Market participants will buy when they think the return is worth the risk and sell when they think the return is not worth the risk. The 4% in this example, would midpoint that the arrives at after all this buying and selling happens. It is essentially a consensus value
@pandorayim Жыл бұрын
@@RyanOConnellCFA thank you very Much! Great videos btw! Please continue with good work!