Name | Characteristics | Example | Financial Calculator |
Single Cash Flow |
|
Receive $100 a year from now | pmt = 0 |
Multiple Cash Flows |
|
Receiving $100 first year, $200 second year, and $300 third year | If uneven cash flows: calculate one cash flow at a timeEven cash flows: pmt = Cash Flow |
Annuity |
|
Receiving $100 per year for 5 years | pmt = Cash Flow |
Coupon Bond |
|
A bond with 9% coupon rate for 5 years | Calculate the first section and the lump sum of 100 separate and add the values together |
Perpetuity |
|
Receiving $100 per year for ever | Can not use financial calculator |
Growing Perpetuity |
|
Receiving $100 that grows 5% per year for ever | Can not use financial calculator |
Time Value of Money
November 10, 2011 by shirinm
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