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9 Cards in this Set
- Front
- Back
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Equation of exchanges
Chapter 2 page 37 |
MV=PY
M=Quantity of money V=Velocity of money P=Price level Y=Real GDP |
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Velocity equation
Chapter 2 Page 37 |
V=PY/M
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Future value equation
Chapter 3 page 54 |
Principal X (1+i)^n=FV
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Present value equation
Chapter 3 page 56 |
PV=FV/(1+i)^n
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Rate of return equation
chapter 3 page 72 |
R=coupon + capital gain/purchase price.
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Perpetuities
Page 65 |
P=C/I
C=Coupon P=Principal I= Interest |
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Initial price
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Initial price=coupon/current yield
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Nominal interest rate
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YTM=Face value-price/price
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Discount bond yield to maturity
Page 64 |
I=FV-P/P
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