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If you are doing PVA and FVA problems, what difference does it make if the annuities are "ordinary annuities" or "annuities due"?
In PVA or a FVA of annuity due trouble, annuity expenditure earning interest one period sooner than in ordinary annuity trouble thus, higher PVA and FVA values result with an annuity due. The first payment takes place sooner in the case of a future value of an annuity due. In current value of annuity due problems, each annuity payment takes place one period sooner, so the payments are discounted fewer severely.
Briefly discuss some variants of the basic interest rate and currency swaps. Answer: In place of the basic fixed-for-floating interest rate swap, there are as well zero-coupo
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CAPITALISATION RATE=0.01 EARNINGS PER SHARE(E)=10 ASSUME RATE OF RETURNS ON INVESTMENTS (R):15
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