I can calculate bond carrying value at any point of time by simply changing “N” on my calculator when it’s in the END mode. Even for lease calculations, if it is paid at the end of the year, shouldn’t be any problem as it follows the same calculation(in the END mode only) as in case of Bond. Now, If the lease is paid at the beginning of the year and I try to follow the same calculation as I do in END mode. It doesn’t yield the results as expected. Does anyone know why would this be?
Because You have to change into BGN mode because the lease is paid at the beg of the year
That’s what I am saying if I change it to begin mode, I am not able to calculate that year’s lease payable or lease receivable. That I can do in END mode. Calculator gives me different values.
It would be easer to us to solve the problem if you put the example here.
You talking about the example in the curriculum?
JonnyKay Wrote: ------------------------------------------------------- > You talking about the example in the curriculum? Yes, you can try examples of the curriculum. That’s what I had tried. I was surprised to see that result doesn’t match.
optiix Wrote: ------------------------------------------------------- > It would be easer to us to solve the problem if > you put the example here. You can use ex#13 pg533, FRA to build the lease profile using calculator.