Lump sum payments Formulas:
𝑃𝑉 = 𝐹𝑉(1 + 𝑟)𝑡
𝐸𝐴𝑅(𝑌𝑖𝑒𝑙𝑑) = (1 +
𝐹𝑉 = 𝑃𝑉(1 + 𝑟)𝑡
Ordinary Annuity payments Formulas:
1 − (1 + 𝑟)−𝑡
𝑃𝑉 = 𝐹𝑉(
𝑟
𝐹𝑉 = 𝑃𝑉(
(1+𝑟)𝑡 −1
𝑟
)
Annuity Due formula:
𝐹𝑉 = 𝑃𝑉(
(1+𝑟)𝑡 −1
𝑟
)(1+r)
Treasury Bills
𝑆𝑃 − 𝑃𝑃 365
𝑥
𝑃𝑃
𝑛
𝑃𝑎𝑟 − 𝑃𝑃 360
𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡 =
𝑥
𝑃𝑎𝑟
𝑛
𝐴𝑛𝑛𝑢𝑎𝑙𝑖𝑧𝑒𝑑 𝑦𝑖𝑒𝑙𝑑 =
Commercial Paper
𝐴𝑛𝑛𝑢𝑎𝑙𝑖𝑧𝑒𝑑 𝑦𝑖𝑒𝑙𝑑 =
𝑆𝑃 − 𝑃𝑃 360
𝑥
𝑃𝑃
𝑛
Negotiable Certificates of Deposit (NCD)
𝐴𝑛𝑛𝑢𝑎𝑙𝑖𝑧𝑒𝑑 𝑦𝑖𝑒𝑙𝑑 =
𝑆𝑃 − 𝑃𝑃 + 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 360
𝑥
𝑃𝑃
𝑛
Repurchase Agreements
𝐴𝑛𝑛𝑢𝑎𝑙𝑖𝑧𝑒𝑑 𝑦𝑖𝑒𝑙𝑑 =
Effective Annual Return rate
𝑆𝑃 − 𝑃𝑃 360
𝑥
𝑃𝑃
𝑛
𝑟 360
) 𝑛 −1
360
𝑛