118
BA II PLUS™ Calculator
Cash Flow
NPV
CF
CF
i
i
i
j
S
n
j
N
j
j
=
+
+
− +
−
−
−
=
∑
0
1
1
1
1
1
(
)
(
(
)
)
where:
S
n
j
j
j
i
i
j
=
≥
=
=
∑
1
1
0
0
Net present value is dependent on the values of the initial cash
flow (
CF
0
), subsequent cash flows (
CF
j
), frequency of each
cash flow (
n
j
), and the specified interest rate (
i
).
IRR
= 100
×
i
, where
i
satisfies
npv
( ) = 0
Internal rate of return is dependent on the values of the initial
cash flow (
CF
0
) and subsequent cash flows (
CF
j
).
i
=
I/Y
÷
100
Bonds
Price (given yield) with one coupon period or less to
redemption:
PRI
RV
R
M
DSR
E
Y
M
A
E
R
M
=
+
×
+
×
−
×
×
100
1
100
where:
PRI
= dollar price per $100 par value
RV
= redemption value of the security per $100 par
value (
RV
= 100 except in those cases where
call or put features must be considered)
R
= annual interest rate (as a decimal; CPN _ 100)
M
= number of coupon periods per year standard
for the particular security involved (set to 1 or
2 in Bond worksheet)
DSR
= number of days from settlement date to
redemption date (maturity date, call date, put
date, etc.)
