Time value of money and financial calculator tutorials
Tutorials by Brand:
Time value of money and financial calculator tutorials
In the previous section we looked at using the basic time value of money functions to calculate present and future value of annuities (even cash flows). In this section we will take a look at how to use Excel to calculate the present and future values of uneven cash flow streams. We will also see how to calculate net present…
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. In this section we will take a look at how to use the HP 12C to calculate the present and future values of regular annuities and annuities due. A regular annuity is…
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 annuities. In this section we will take a look at how to use the HP 20b to calculate the present and future values of uneven cash flow streams.…
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…
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 84 Plus to calculate the present and future values of uneven…
The article explains the concept of a "make-whole" call provision in bonds, highlighting its benefits for both investors and issuers. Unlike traditional call provisions that offer face value plus a small premium, make-whole calls ensure investors receive the present value of remaining cash flows, calculated using a discount rate tied to a comparable Treasury security. This provision provides issuers flexibility without paying a call premium. The article demonstrates three methods to calculate the make-whole price using a TI BAII Plus financial calculator, ensuring that investors are fairly compensated if the bond is called early.
The article explains the concept of a "make-whole" call provision in bonds, highlighting its benefits for both investors and issuers. Unlike traditional call provisions that offer face value plus a small premium, make-whole calls ensure investors receive the present value of remaining cash flows, calculated using a discount rate tied to a comparable Treasury security. This provision provides issuers flexibility without paying a call premium. The article demonstrates three methods to calculate the make-whole price using a TI BAII Plus financial calculator, ensuring that investors are fairly compensated if the bond is called early.
This article focuses on using the TI BAII Plus Professional financial calculator to calculate the present and future values of uneven cash flow streams. It explains how to handle uneven cash flows, net present value (NPV), internal rate of return (IRR), and modified internal rate of return (MIRR). The tutorial provides step-by-step instructions for inputting cash flows and calculating these financial metrics, emphasizing the importance of correct data entry and using specific keys on the calculator. The article aims to help readers effectively evaluate investments with varying cash flows using the TI BAII Plus Professional.