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Full-Text Articles in Business

Quantifying Time Value Errors, George A. Mangiero, Susan M. Mangiero Jan 1995

Quantifying Time Value Errors, George A. Mangiero, Susan M. Mangiero

WCBT Faculty Publications

Focuses on the quantification of the magnitude of error when the mathematical function for present value is ignored and interpolation is used to determine the discount factor in the time valuation of cash flows. Length of discounting period; Linear interpolation between table present value factors for periodic interest rate and same interest rate plus one per cent; Sensitivity of maximum error timing to interest rate.


Bonds Issued Between Interest Dates: What Your Textbook Didn't Tell You, Elbert B. Greynolds, Jr., Arthur L. Thomas Jan 1983

Bonds Issued Between Interest Dates: What Your Textbook Didn't Tell You, Elbert B. Greynolds, Jr., Arthur L. Thomas

Historical Working Papers

Inconsistencies in calculating the interest that accrues to bonds due to application of straight line allocation is investigate. The authors suggest that compound interest should be appropriately calculated to avoid paradoxical outcomes.


New Efficient Equations To Compute The Presentvalue Of Morgage Interest Payments And Accelerated Depreciation Tax Benefits, Elbert B. Greynolds, Jr. Jan 1980

New Efficient Equations To Compute The Presentvalue Of Morgage Interest Payments And Accelerated Depreciation Tax Benefits, Elbert B. Greynolds, Jr.

Historical Working Papers

Equations are presented that allow students to quickly calculate present value for mortgage payments and depreciation tax benefits. Calculations can be done witha hand calculator that has a Y x(exponent) function.