BONDS FORMULA ,NORMALBONDS, ZERO-COUPON BONDS AND PERPETUAL BONDS

BONDS FORMULA ,NORMALBONDS, ZERO-COUPON BONDS AND PERPETUAL BONDS

NORMAL BONDS FORMULA:

1) V = (I X PVIFA _kd,n) + (MV X PVIF_kd,n)

i= interest rate
I= interest amount
V= value of bond or price of a bond
kd= market rate of return, required rate of return or yield , expected rate
n= number of year
MV= maturity value or face value

I=MV x i

2) if  kd  is in fractions

ZERO-COUPON BONDS:

PERPETUAL BONDS:

V= I/kd



FINANCIAL MANAGEMENT
DECISION AREA OF FINANCIAL MANAGEMENT
AGENCY PROBLEM
TYPES OF BUSINESS
FINANCIAL SYSTEM
FINANCIAL INTERMEDIARIES
TYPES OF FINANCIAL MARKETS
TIME VALUE OF MONEY
EXAMPLES AND FORMULA TIME VALUE OF MONEY
CASH FLOW,SUM,SERIES OF CASH, ANNUITY AND MIX STREAM
ANNUITY TYPES AND FORMULA
AMORTIZATION SCHEDULE OR TABLE WITH EXAMPLE
EFFECTIVE INTEREST RATE WITH EXAMPLE
VALUATION OF LONG TERM SECURITIES (BONDS)
TYPES OF BONDS
BONDS FORMULA,ZERO COUPON PERPETUAL
VALUATION OF LONG TERM SECURITIES (SHARE)
CASH AND MARKETABLE SECURITIES MANAGEMENT
MANAGING CASH INFLOW AND OUTFLOW
SECURITIES MANAGEMENT
SHORT TERM FINANCING
SPONTANEOUS LABILITIES
NEGOTIATED FINANCE
CAPITAL BUDGETING
CAPITAL BUDGETING TECHNIQUE
NET PRESENT VALUE TECHNIQUE
INTERNAL RATE OF RETURN TECHNIQUE
ACCOUNT RECEIVABLE MANAGEMENT
INVENTORY MANAGEMENT
FORCASTING

MBA NOTES FINANCIAL MANAGEMENT