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9 Cards in this Set
- Front
- Back
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premium
|
issuance price > FV
effective < stated |
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discount
|
issuance price < FV
effective > stated |
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cash paid
(interest paid) |
face value x stated rate
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interest expense
|
carrying value x market rate
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present value equation:
|
PV of FV + PV of Interest Payments
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present value equation:
PV of FV= |
FV x PV1
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present value equation:
PV of interest paid= |
( FV x stated rate) (PVOA)
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present value equation:
PV1= |
EFFECTIVE rate & N
(single sum table) |
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present value equation:
PVOA= |
EFFECTIVE rate & N
(ordinary annuity table) |
