Aaa University of Connecticut Financial Mathematics I Key Concepts and Formulas Chapter 4 Recommended Reading Sections 4.1 – 4.3 Sections 4.6 – 4.7 Recommended Practice Problems from D&V Text Section 4.2 4.6 Problems 1–3 1–3 Additional Practice Problems See end of this packet Section 4.3 Problems 1, 3 – 4 Chapter 4 Introduction Payments are less frequent than interest is convertible Payments more frequent than interest is convertible 1 1 1 1 1 1 1 1 1 1 1 1 1 . . . 0 1 n-1 2 n Interest Conversion Period Discussion This chapter discusses how to value cashflow streams when the frequency of payments does not match the frequency of interest conversions. Here are key considerations:  A “first principles” understanding is required in order to master this analysis.  New annuity symbols are introduced in order to identify changes to the frequency of payments (e.g.  ) or to the interest rate (e.g. ). As a practical matter, it may be eas

February 18, 2017 | Author: Ti-Guy Joseph Hilaire | Category: N/A


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Download Aaa University of Connecticut Financial Mathematics I Key Concepts and Formulas Chapter 4 Recommended Reading Sections 4.1 – 4.3 Sections 4.6 – 4.7 Recommended Practice Problems from D&V Text Section 4.2 4.6 Problems 1–3 1–3 Additional Practice Problems See end of this packet Section 4.3 Problems 1, 3 – 4 Chapter 4 Introduction Payments are less frequent than interest is convertible Payments more frequent than interest is convertible 1 1 1 1 1 1 1 1 1 1 1 1 1 . . . 0 1 n-1 2 n Interest Conversion Period Discussion This chapter discusses how to value cashflow streams when the frequency of payments does not match the frequency of interest conversions. Here are key considerations:  A “first principles” understanding is required in order to master this analysis.  New annuity symbols are introduced in order to identify changes to the frequency of payments (e.g.  ) or to the interest rate (e.g. ). As a practical matter, it may be eas

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