ANNUITY - FUTURE VALUE (FV FUNCTION)
Eg. You have subscribed to an SIP and you want to know the amount at maturity
ANNUITY AMOUNT Rs.5,000.00
RATE (growth rate) 9%
TIME PERIOD (YEARS) 5
FUTURE VALUE OF ANNUITY
ANNUITY - PRESENT VALUE (PV FUNCTION)
Eg. You want to know the PV of a Unitech corporate bond
ANNUITY AMOUNT Rs.1,000.00
RATE (discount rate) 9%
TIME PERIOD (YEARS) 5
PAR VALUE (Received at Rs.10,000.00
Redemption)
PRESENT VALUE OF ANNUITY
LOAN - FUTURE VALUE FOR DIFFERENT INTEREST RATES
(FVSCHEDULE FUNCTION)
PRINCIPAL AMOUNT Rs.100.00
YEAR INTEREST RATES
1 9%
2 10%
3 11%
4 12%
5 13%
6 14%
FUTURE VALUE OF PRINCIPAL
LOAN - CALCULATION OF EMI (PMT FUNCTION)
LOAN AMOUNT Rs.2,000,000.00
RATE 10%
TIME PERIOD (YEARS) 15
EMI OF LOAN
LOAN AMORTIZATION – INTEREST COMPONENT OF EMI
(IPMT FUNCTION)
LOAN AMOUNT Rs.1,000,000.00
RATE 12%
TIME PERIOD (YEARS) 15
No. of Installment for which
interest component is to be 10
calculated
INTEREST COMPONENT OF
EMI
LOAN AMORTIZATION – PRINCIPAL COMPONENT OF
EMI (PPMT FUNCTION)
LOAN AMOUNT Rs.1,000,000.00
RATE 12%
TIME PERIOD (YEARS) 15
No. of Installment for which
Principal component is to be 10
calculated
PRINCIPAL COMPONENT OF
EMI =
LOAN AMORTIZATION – NUMBER OF PERIODS OF
PAYMENTS (NPER FUNCTION)
LOAN AMOUNT Rs.1,000,000
RATE 12%
EMI (Rs.200,000)
NUMBER OF PERIODS OF EMI
LOAN AMORTIZATION – INTEREST RATE (RATE
FUNCTION)
LOAN AMOUNT Rs.1,000,000
EMI (Rs.200,000)
TIME PERIOD (YEARS) 15
RATE OF EMI
INPUT
Loan For Dream Car Rs. 2,000,000
Annual Interest 10.00%
Term (Years) 12
OUTPUT
Annual Payment (EYI) (Rs. 293,527)
Total Payment to be made
to payoff loan (Rs. 3,522,320)
Amortization Table
Year Interest Payment Principal Payment
1
2
3
4
5
6
7
8
9
10
11
12
Total
OUTPUT
on Table
Outstanding Principal Yearly Payment Interest Checker
Rs. 2,000,000
CALCULATION OF EFFECTIVE RATE OF INTEREST
INTEREST RATE 12%
FREQUENCY OF COMPOUNDING 12
IS MONTHLY
EFFECTIVE RATE = 12.68%
CALCULATION OF NOMINAL RATE OF INTEREST
EFFECTIVE INTEREST RATE 12%
FREQUENCY OF COMPOUNDING
IS MONTHLY 12
NOMINAL RATE = 11.39%
BONDS - PRICE
COUPON RATE 10%
YIELD-TO-MATURITY 12%
DATE OF SETTLEMENT 1-Sep-13
DATE OF MATURITY 31-Aug-18 Please note how the date of maturity is calculated
considering the term of the bond
TERM OF THE BOND 5
REDEMPTION AMOUNT Rs. 100.00
BOND PRICE =
BONDS - YIELD
COUPON RATE 10%
BOND PRICE Rs. 92.00
DATE OF SETTLEMENT 1-Sep-13
DATE OF MATURITY 31-Aug-18
TERM OF THE BOND 5
REDEMPTION AMOUNT Rs. 100.00
BOND YIELD =
w the date of maturity is calculated
ering the term of the bond
CALCULATION OF PRESENT VALUE OF CASH FLOWS
NPV
PROJECT COST (Rs. Lakhs) Rs. -
Year-1 Cash Flows Rs. 5.00
Year-2 Cash Flows Rs. 8.00
Year-3 Cash Flows Rs. 9.00
Year-4 Cash Flows Rs. 12.00
Year-5 Cash Flows Rs. 10.00
COST OF FUNDS (Per Annum) 12%
RESULT
CALCULATION OF IRR
PROJECT COST (Rs. Lakhs) Rs. (20.00) Financing Rate
Year-1 Cash Flows Rs. 4.00 Reinvestment Rate
Year-2 Cash Flows Rs. 6.00
Year-3 Cash Flows Rs. 8.00
Year-4 Cash Flows Rs. 12.00
Year-5 Cash Flows Rs. 14.00
RESULT
12%
15%
INPUT DATA
LOAN AMOUNT Rs. 25,000,000
LOAN PERIOD 15 YEARS
INTEREST RATE 12% Per Annum
INSTALMENT OF THE LOAN IS PAID MONTHLY AND AT THE END OF THE MONTH
YEAR OPENING BALANCE INTEREST TOTAL AMOUNT
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
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43
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82
83
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85
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87
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89
90
91
92
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95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
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113
114
115
116
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118
119
120
121
122
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125
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127
128
129
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132
133
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135
136
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158
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160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
OF THE MONTH
EMI AMOUNT CLOSING BALANCE
CALCULATION OF YIELD ON THE HDFC BOND
The Price Quoted is CLEAN PRICE
Date of Transaction August 9, 2019
CLEAN PRICE Rs. 103.4767
Last Date when the coupon was paid March 27, 2019
No. of Days for which accrued
interest to be calculated
Coupon Rate 8.55%
Face Value Rs. 100.00
Accrued Interest Rs. -
DIRTY PRICE Rs. 103.48
Date Cashflows
August 9, 2019
March 27, 2020
March 27, 2021
March 27, 2022
March 27, 2023
March 27, 2024
March 27, 2025
March 27, 2026
March 27, 2027
March 27, 2028
March 27, 2029
YIELD Err:502
CALCULATION OF YIELD ON THE HDFC BOND
The Price Quoted is CLEAN PRICE
Date of Transaction August 9, 2019
CLEAN PRICE Rs. 103.4767
Last Date when the coupon was paid March 27, 2019
No. of Days for which accrued 135
interest to be calculated
Coupon Rate 8.55%
Face Value Rs. 100.00
Accrued Interest Rs. 3.16
DIRTY PRICE Rs. 106.64
Date Cashflows
August 9, 2019 Rs. (106.64)
March 27, 2020 Rs. 8.55
March 27, 2021 Rs. 8.55
March 27, 2022 Rs. 8.55
March 27, 2023 Rs. 8.55
March 27, 2024 Rs. 8.55
March 27, 2025 Rs. 8.55
March 27, 2026 Rs. 8.55
March 27, 2027 Rs. 8.55
March 27, 2028 Rs. 8.55
March 27, 2029 Rs. 108.55
YIELD 8.00%
