rwong2k
Jun 4, 2008, 11:35 AM
I don't have the exact question but if someone has an example that would be helpful.
As I can recall the question goes like this:
FV is given
PMT is given but it's compounded quarterly or the coupon rate is compounded quartly
N is given
I is given but it's compounded semi annually
How do I calculate the PV?
I'm using a BA 2 Plus calculator;
I can get the calculations when the PMT periods or coupon periods is the same as the interest periods, but I'm not too sure how to approach these when they are different,
And another twist is for Cash Flows, if the I compounding period is different from the CF periods e.g.. I is in semi annually but the payments are in quartely, how do we calculate these
I've been trying to find an example off the internet so I can walk through this but without success.
Help?
Thank-you
As I can recall the question goes like this:
FV is given
PMT is given but it's compounded quarterly or the coupon rate is compounded quartly
N is given
I is given but it's compounded semi annually
How do I calculate the PV?
I'm using a BA 2 Plus calculator;
I can get the calculations when the PMT periods or coupon periods is the same as the interest periods, but I'm not too sure how to approach these when they are different,
And another twist is for Cash Flows, if the I compounding period is different from the CF periods e.g.. I is in semi annually but the payments are in quartely, how do we calculate these
I've been trying to find an example off the internet so I can walk through this but without success.
Help?
Thank-you