Sei sulla pagina 1di 3

SPREADSHEET MODELING IN CORPORATE FINANCE

CONTENTS

PART 1 TIME VALUE OF PART 2 VALUATION


Chapter 6 Bond Valuation
MONEY 6.1 Basics
Chapter 1 Single Cash Flow 6.2 By Yield To Maturity
1.1 Present Value 6.3 System Of Five Bond Variables
1.2 Future Value 6.4 Dynamic Chart
Problems Problems
Chapter 2 Annuity Chapter 7 Stock Valuation
2.1 Present Value 7.1 Two Stage
2.2 Future Value 7.2 Dynamic Chart
2.3 System of Four Annuity Variables Problems
Problems Chapter 8 The Yield Curve
Chapter 3 Net Present Value 8.1 Obtaining It From Bond Listings
3.1 Constant Discount Rate 8.2 Using It To Price A Coupon Bond
3.2 General Discount Rate 8.3 Using It To Determine Forward Rates
Problems Problems
Chapter 4 Real and Inflation Chapter 9 U.S. Yield Curve Dynamics
4.1 Constant Discount Rate 9.1 Dynamic Chart
4.2 General Discount Rate Problems
Problems
Chapter 5 Loan Amortization
5.1 Basics
5.2 Sensitivity Analysis
Problems

PART 3 CAPITAL BUDGETING PART 4 FINANCIAL PLANNING


Chapter 10 Project NPV Chapter 14 Corporate Financial Planning
10.1 Basics 14.1 Actual
10.2 Forecasting Cash Flows 14.2 Forecast
10.3 Working Capital 14.3 Cash Flow
10.4 Sensitivity Analysis 14.4 Ratios
Problems 14.5 Sensitivity
Chapter 11 Cost-Reducing Project 14.6 Full-Scale Real Data
11.1 Basics Problems
11.2 Sensitivity Analysis Chapter 15 Du Pont System of Ratio
Problems Analysis
Chapter 12 Break-Even Analysis 15.1 Basics
12.1 Based On Accounting Profit Problems
12.2 Based On NPV Chapter 16 Life-Cycle Financial Planning
Problems 16.1 Basics
Chapter 13 Three Valuation Methods Problems
13.1 Adjusted Present Value
13.2 Flows To Equity
13.3 Weighted Average Cost of Capital
Problems

18.2 Dynamic Chart


PART 5 OPTIONS AND 18.3 Continuous Dividend
18.4 Implied Volatility
CORPORATE FINANCE Problems
Chapter 17 Binomial Option Pricing Chapter 19 Debt and Equity Valuation
17.1 Single Period 19.1 Two Methods
17.2 Multi-Period 19.2 Impact of Risk
17.3 Risk Neutral Problems
17.4 Full-Scale Real Data Chapter 20 Real Options
Problems 20.1 Using Black-Scholes
Chapter 18 Black Scholes Option Pricing 20.2 Using The Binomial Model
18.1 Basics 20.3 Sensitivity to Standard Deviation
Problems

Bonus : Portfolio Analysis Using Excel

PART 2 VALUATION
6 Bond Valuation
6.1 Basics
Problem. A bond has a face value of $1,000, an annual coupon rate of 5.0%, a yield to maturity
of 9.0%, makes 2 (semiannual) coupon payments per year, and 8 periods to maturity (or 4 years
to maturity). What is price of this bond based on the Annual Percentage Rate (APR)
convention? What is price of this bond based on the Effective Annual Rate (EAR) convention?

Solution Strategy.

We will create a switch that can be used to select either the EAR or APR rate convention. The
choice of rate convention will determine the discount rate / period. For a given discount rate /
period, we will calculate the bond price in four equivalent ways. First, we will calculate the bond
price as the present value of the bond’s cash flows. Second, we use a formula for the bond
price. Third, we use Excel’s PV function for a bond price. Fourth, we use Excel’s Analysis ToolPak
Add-In PRICE function, which only works under the APR convention.
FIGURE 6.1 Spreadsheet Model of Bond Valuation - Basics.
How To Build This Spreadsheet Model.

1. Enter The Inputs and Name Them. Enter 0 in cell B4. This will serve as a switch between the
APR and the EAR rate conventions. To highlight which rate convention is in use, enter
=IF($B$4=1,"Effective Annual Rate","Annual Percentage Rate") in cell D1. Enter the other
inputs into the range B5:B9 and then name each one. Put the cursor on cell B5, click on Insert |
Name | Define, enter CR in the Names in Workbook box, and click on OK. Put the cursor on
cell B6 and repeat the process to name it kd. Repeat the process to give the cells B7, B8, and B9
the names NOP, N, and M, respectively.
2. Calculate the Discount Rate / / Period. The Discount Rate / Period depends on the rate
Convention being used as follows:

Discount Rate / Period = (1+Yield To Maturity) ^ (1/( Number of Payments / Year ))-1 under EAR
(Yield To Maturity) /( Number of Payments) / Year under APR.

Enter =IF($B$4=1,((1+kd)^(1/NOP))-1,kd/NOP) in cell B12 and use the process above to give
the cell B12 the name DR.

Potrebbero piacerti anche