Casio FXCP400 PRC, RDV, CPN, YLD, INT, CST, Depreciation, Cost/Sell/Margin, Bond Calculation, uStraight-LineMethod, uTerms in the formulas, uFixed-PercentageMethod

Cost/Sell/Margin

CST = SEL 1 –	MRG	SEL =	CST		MRG(%) = 1 –	CST	⋅ 100
	100					SEL
		1 –		MRG
				100

DepreciationuStraight-Line Method

SL1 =	(PV – FV )	⋅	YR1	SLj =	(PV – FV )	SLn+1 =	(PV – FV )	⋅	12 – YR1	(YR112)
	n		12		n		n		12

uFixed-Percentage Method

FP1 = PV ⋅	I%	⋅	YR1	FPj = (RDVj–1+ FV ) ⋅	I%	FPn+1 = RDVn	(YR112)
	100		12		100
RDV1 = PV – FV – FP1				RDVj = RDVj–1– FPj		RDVn+1 = 0	(YR112)

uSum-of-the-Years’-Digits Method

n (n + 1)

n' = n –

YR1

Z' =

(Intg(n' ) + 1)(Intg(n' ) + 2 ⋅ Frac(n' ))

Z =

2

12

2

SYD1 =

n

⋅

YR1

(PV – FV )

SYDj = (

n' – j + 2

)(PV – FV – SYD1) ( j1)

Z

12

Z'

SYDn+1 = (

n' – (n + 1) + 2

)(PV – FV – SYD1) ⋅

12 – YR1

(YR112)

12

Z'

RDV1 = PV – FV – SYD1

RDVj = RDVj –1– SYDj

uDeclining-Balance Method

DB1 = PV ⋅	I%	⋅	YR1	RDV1 = PV – FV – DB1	DBj = (RDVj–1+ FV ) ⋅		I%
	100n		12				100n
RDVj = RDVj–1– DBj				DBn +1 = RDVn (YR112)	RDVn+1 = 0	(YR112)

Bond CalculationuTerms 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)	Issue date
N: number of coupon payments until maturity (n is
used when “Term” is specified for “Bond Interval”.)

D

AB

Redemption date (d2)

INT: accrued interest	Purchase date (d1)	Coupon payment dates
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

Chapter 11: Financial Application 185