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Cost of capital

In Cost of Capital video no. 6 computation of YTM there is no clear explanation about calculating of discount factor ( 3.791 & 0.621) Please explain


Jyoti Revannavar

Jyoti Revannavar

CA Inter

1K+

15-Jan-20 16:32

44

Answers (1)

Number of periods/year - 5 PVAF for 10% for 5 years is 3.791 PVF for 10% for 5th Year is 0.621 These have been explained in the time value of money chapters. Computation is given below Year 10% 1 0.909090909 2 0.826446281 3 0.751314801 4 0.683013455 5 0.620921323 Total 3.790786769


Suraj Lakhotia

Suraj Lakhotia

Admin

20-Jan-20 19:52