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The document provides examples of financial calculations, including the computation of bond discount for a treasury bond and the net asset value (NAV) of an investment trust company. The first example shows how to determine the bond discount using present value and principal value. The second example illustrates how to calculate NAV by subtracting total liabilities from total assets and dividing by outstanding shares.

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Ivy Luna
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33 views1 page

Activity

The document provides examples of financial calculations, including the computation of bond discount for a treasury bond and the net asset value (NAV) of an investment trust company. The first example shows how to determine the bond discount using present value and principal value. The second example illustrates how to calculate NAV by subtracting total liabilities from total assets and dividing by outstanding shares.

Uploaded by

Ivy Luna
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Example

A treasury bond with a P200,000 principal value has a 4% coupon and a 100-day maturity period.
Compute for the bond discount.

Solution

PV =PP ¿)
200,000¿ PP¿ )

200,000
PP = 100
1+ 0.04( )
360
PP = 197,802

D = PV – PP

= 200,000 – 197,802

D = P2,198

Example:

An investment trust company has P500M worth of stocks, P25M worth of bonds, P10M in cash. The
fund’s total liabilities amount to P5M. If there are 8 million outstanding shares, calculate the net asset
value of the fund.

Solution

total assets=500 M +25 M +10 M =535 M


assets−liabilities
NAV =
Outstanding share
P 535 M −P 5 M
¿
P8 M
NAV =P 66.25

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