Chapter 11
:
Financial Application
192
Cost/Sell/Margin
CST
=
SEL
100
MRG
1 –
SEL
=
100
MRG
1 –
CST
MRG
(%) =
SEL
CST
1 –
×
100
Depreciation
u
Straight-Line Method
YR
1
(
PV
–
FV
)
SL
1
=
n
12
×
(
PV
–
FV
)
SL
j
=
n
12 –
YR
1
(
YR
1
12)
(
PV
–
FV
)
n
12
×
SL
n
+1
=
u
Fixed-Percentage Method
100
YR
1
I%
FP
1
=
PV
×
12
×
100
I%
FP
j
= (
RDV
j
–1
+ FV
)
×
FP
n
+1
=
RDV
n
(
YR
1
12)
RDV
1
=
PV
–
FV
–
FP
1
RDV
j
=
RDV
j
–1
–
FP
j
RDV
n
+1
= 0 (
YR
1
12)
u
Sum-of-the-Years’-Digits Method
n
(
n
+
1)
Z
=
2
2
(
Intg
(
n'
)
+ 1)(
Intg
(
n'
)
+ 2
×
Frac
(
n'
)
)
Z'
=
SYD
1
=
YR
1
12
n
Z
×
(
PV
–
FV
)
n'
–
j +
2
Z'
)(
PV
–
FV
–
SYD
1
)
(
j
1)
SYD
j
= (
RDV
1
=
PV
–
FV
–
SYD
1
RDV
j
=
RDV
j
–1
–
SYD
j
n'
–
(
n
+
1)
+
2
Z'
)(
PV
–
FV
–
SYD
1
)
(
YR
1
12)
12 –
YR
1
12
×
SYD
n
+1
= (
12
YR
1
n'
=
n
–
u
Declining-Balance Method
100
n
YR
1
I%
DB
1
=
PV
×
12
×
RDV
1
=
PV
–
FV
–
DB
1
100
n
I%
×
DB
j
= (
RDV
j
–1
+
FV
)
RDV
j
=
RDV
j
–1
–
DB
j
(
YR
1
12)
DB
n
+1
=
RDV
n
(
YR
1
12)
RDV
n
+1
= 0
Bond Calculation
u
Terms in the formulas
PRC
: price per $100 of face value
RDV
: redemption price per $100 of face value
CPN
: coupon rate (%)
YLD
: annual yield (%)
M
: number of coupon payments per year
(1 = Annual, 2 = Semi-annual)
N
: number of coupon payments until maturity (
n
is
used when “Term” is specified for “Bond Interval”.)
INT
: accrued interest
CST
: price including interest
A
: accrued days
D
: number of days in coupon period where settlement occurs
B
: number of days from purchase date until next coupon payment date =
D
–
A
D
Issue date
Redemption date (d2)
Purchase date (d1)
Coupon payment dates
A
B