Tag NPV

Excel’s NPV Function Doesn’t Calculate Net Present Value

The article explains that Excel's NPV function does not truly calculate Net Present Value because it doesn’t include the initial investment. Instead, it calculates the present value of uneven cash flows. To get real NPV, subtract the initial outlay from the NPV result or include it in the cash flow range and adjust the time period. It also introduces a third method using the PV function with arrays to achieve the same result in one step.

Make-whole Call Provisions on the HP 12C

In recent years, bond issuers have changed from the traditional call schedule to a “make-whole” type of call. Generally, this is good for investors as it makes it less likely that high interest bonds will be called. If it is called, then they are “made whole” because they are paid the present value of the remaining cash flows. In a…

Make-whole Call Provisions on the HP 10B and 10BII Financial Calculators

In recent years, bond issuers have changed from the traditional call schedule to a “make-whole” type of call. Generally, this is good for investors as it makes it less likely that high interest bonds will be called. If it is called, then they are “made whole” because they are paid the present value of the remaining cash flows. In a…

Make-Whole Call Provisions on the TI 83 Plus

In recent years, bond issuers have changed from the traditional call schedule to a “make-whole” type of call. Generally, this is good for investors as it makes it less likely that high interest bonds will be called. If it is called, then they are “made whole” because they are paid the present value of the remaining cash flows. In a…

Make-whole Call Provisions on the HP 19BII

In recent years, bond issuers have changed from the traditional call schedule to a “make-whole” type of call. Generally, this is good for investors as it makes it less likely that high interest bonds will be called. If it is called, then they are “made whole” because they are paid the present value of the remaining cash flows. In a…

TI 83 and TI 83 Plus Tutorial, Part III

Uneven Cash Flow Streams In the previous section we looked at the basic time value of money keys and how to use them to calculate present and future value of lump sums and regular annuities. In this section we will take a look at how to use the TI 83 Plus to calculate the present and future values of uneven…

HP 19BII Tutorial, Part III

In the previous section we looked at the basic time value of money keys and how to use them to calculate present and future value of lump sums and annuities. In this section we will take a look at how to use the HP 19BII to calculate the present and future values of uneven cash flow streams. We will also…

HP 12C Tutorial, Part III

In the previous section we looked at the basic time value of money keys and how to use them to calculate present and future value of lump sums and annuities. In this section we will take a look at how to use the HP 12C to calculate the present and future values of uneven cash flow streams. We will also…

Make-whole Call Provisions on the HP 20b Financial Calculator

This article explains how to calculate the call price of a bond with a make-whole call provision using the HP 20b calculator.

Make-whole call provision is beneficial to investors because they get the present value of all remaining cash flows if the bond is called early. The calculation considers the coupon rate, maturity date, and a discount rate based on a Treasury security.

The article provides a step-by-step guide for calculating the call price using both the Time Value of Money (TVM) keys and the Net Present Value (NPV) function on the HP 20b calculator.

Make-whole Call Provisions in Excel

In recent years, bond issuers have changed from the traditional call schedule to a “make-whole” type of call. Generally, this is good for investors as it makes it less likely that high interest bonds will be called. If it is called, then they are “made whole” because they are paid the present value of the remaining cash flows. In a…

Make-whole Call Provisions on the HP 17BII

In recent years, bond issuers have changed from the traditional call schedule to a “make-whole” type of call. Generally, this is good for investors as it makes it less likely that high interest bonds will be called. If it is called, then they are “made whole” because they are paid the present value of the remaining cash flows. In a…

Make-whole Call Provisions on the HP 10BII+

The article explains the concept of a "make-whole" call provision in bonds and demonstrates how to calculate the make-whole call price using the HP 10BII+ financial calculator. It contrasts the make-whole call with traditional calls, noting the benefits for investors and issuers. Using an example bond from PPG Industries, it details the calculation process through three methods: TVM keys, the NPV function, and the Bond functions of the calculator. Each method yields the same result, illustrating the present value of remaining cash flows and the call price.

HP 10BII+ Tutorial, Part III

Uneven Cash Flows In the previous section we looked at the basic time value of money keys and how to use them to calculate present and future value of lump sums and regular annuities. In this section we will take a look at how to use the HP 10BII+ to calculate the present and future values of uneven cash flow…

HP 17BII Tutorial, Part III

In the previous section we looked at the basic time value of money keys and how to use them to calculate present and future value of annuities. In this section we will take a look at how to use the HP 17BII to calculate the present and future values of uneven cash flow streams. We will also see how to…

HP 10B Tutorial, Part III

In the previous section we looked at the basic time value of money keys and how to use them to calculate present and future value of lump sums and regular annuities. In this section we will take a look at how to use the HP 10B to calculate the present and future values of uneven cash flow streams. We will…