In the previous movie, I showed you how to calculate the interest rate behind an investment. In this movie, I’ll show you how to discover the amount you’ll receive when you know the length of the investment and its interest rate. To make this calculation, you’ll use the information I just listed and the RECEIVED function.
- [Instructor] In the previous movie, I showed you how to…calculate the interest rate implied by other terms…of an investment.…In this movie I will show you how to discover…the amount you'll receive when you know the length…of the investment, its interest rate, and also…the amount you could earn with a risk-free investment.…To make that calculation, you use the received function.…I'll demonstrate how to use that.…My sample file is ValueAtMaturity_05_03, and you can…find that in the Chapter 5 folder of…the Exercise Files collection.…
Again I want to know the amount of money that…I will receive per $100 invested.…I need to know five different bits of information.…The first is the settlement date that's in C3.…That's when I actually take possession of the security.…Next is the maturity date, that's the date…the investment ends and I receive the payment I'm due.…Next, in C5, is the discount rate.…The discount rate is the amount of money that you…believe you could make from a risk-free investment.…For example, those could be US Treasury bonds,…
- Analyzing loans, payments, and interest
- Calculating depreciation
- Determining values and rates of return
- Calculating bond coupon dates and security durations
- Calculating security prices and yields
- Calculating prices and yields of securities with odd periods
- Analyzing simulation results
Skill Level Intermediate
1. Analyzing Loans, Payments, and Interest
2. Calculating Depreciation
3. Determining Values and Rates of Return
4. Calculating Bond Coupon Dates and Security Durations
5. Calculating Security Prices and Yields
6. Analyzing Simulation Results
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