Zero Coupon Bond Effective Yield

What is the Concept of Zero Coupon Bond Effective Yield

Zero Coupon Bond Effective Yield = [F ÷ PV](1 ÷ n) – [ 1 ] F = face value PV = present value n = number of periods Zero coupon bond effective yield helps to determine the return on the zero coupon bond. Basically, zero coupon bond do not offer…

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Present Value with Continuous Compounding

How Present Value with Continuous Compounding can affects business operating costs

Present value continuous compounding = C ÷ ert C = cash flow r = rate t = time Present value of continuous compounding formula helps an investor to determine the current value of a future amount which is earning interest at continuous compounding rate. Here in the formula there are…

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Zero Coupon Bond Value

Do Zero Coupon Bond Worth to Buy in 2019?

Zero coupon bond value = F ÷ (1+ r)t F = face value of bond r = rate or yield t = time to maturity Zero coupon bond is also known as pure discount bond or sometimes also as discount bond. Basically, zero coupon bond do not pays periodic payments…

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present value of annuity factor

What Are The Benefits of Using Present Value Annuity Factor in Decision Making

Present value annuity factor = [1 – (1 + r)-n] ÷ r r = rate for the period n = number of periods The present value annuity factor is utilized to calculate the PV of cash flows from investment to be received in the future. The approach or principle behind…

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How Yield to Maturity is Helpful to Measure the Profitability of Investments

YTM = [C + {(F – P) ÷ n}] ÷ [(F + P) ÷ 2] C = Interest payment F = Face value P = price n = years to maturity YTM formula or yield to maturity equation is utilized to figure the yield on a security bond on the…

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Price to Sales Ratio

Is Price to Sales Ratio is a Prime Factor to Reflect Future Growth

Price to Sales ratio = Share price ÷ Sales per share Price to sales ratio is also known as the Price/Sales ratio or P/S ratio and is used most commonly for shares and stock analysis. It is basically a relative measure between the market price of share and revenue generated…

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Return on Assets

How Return on Assets can Influence the Earning Potential of a Business

Return on Assets = Net Profit margin × Asset Turnover Ratio Return on assets formula, at times also known as ROA, just gives an overview of an entity’s total revenue divided by its total assets. In other words, the return on assets gives a chance to investor or analysts to…

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Present Value

Do Present Value Really Helps to Find Over-Appraisal of Profits

PV = C1 ÷ (1 + r)n C1 = Cash Flow at period 1 r = rate of return n = number of periods Present value formula, sometimes also referred to as PV formula is utilized to calculate the value of money at present day which is expected to be…

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Net Profit Margin

Is Net Profit Margin Enough to Ascertain the Business Sustainability

Net profit margin = Net income ÷ Sales revenue Net profit margin formula helps financial analysts to understand the net income amount of an organization’s revenue. The net profit margin is commonly recognized in % terms and can be found in the financial statements of a company. To calculate the…

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return on investment

Did Return on Investment Alone Helpful for a Project Evaluation?

ROI = [Earnings – Initial investment] ÷ [Initial investment] Return on investment formula now and then alluded to as ROI or rate of return. ROI helps to measures the rate of return on a specific investment or venture. Moreover, return on investment formula is typically utilized to evaluate the benefit…

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