This works the same as IRR calculation. inflow=outflow Market price - floatation cost = 10(1-0.3)% interest every year + Redemption amount at the end of 10 years. you have to find the rate at which you will pull the right-hand side to get approximately equal to the left-hand side. Take two rates andRead more
This works the same as IRR calculation.
inflow=outflow
Market price – floatation cost = 10(1-0.3)% interest every year + Redemption amount at the end of 10 years.
you have to find the rate at which you will pull the right-hand side to get approximately equal to the left-hand side.
Cost of capital
Yield to Maturity approach. Its basically the IRR calculation
Yield to Maturity approach.
Its basically the IRR calculation
OPC
There is a mistake in the module regarding this. They have written 182 days but the right provision is 180 days.
There is a mistake in the module regarding this. They have written 182 days but the right provision is 180 days.
Cost of capital
This works the same as IRR calculation. inflow=outflow Market price - floatation cost = 10(1-0.3)% interest every year + Redemption amount at the end of 10 years. you have to find the rate at which you will pull the right-hand side to get approximately equal to the left-hand side. Take two rates andRead more
This works the same as IRR calculation.
inflow=outflow
Market price – floatation cost = 10(1-0.3)% interest every year + Redemption amount at the end of 10 years.
you have to find the rate at which you will pull the right-hand side to get approximately equal to the left-hand side.
Take two rates and finally do interpolation