Business Functions Library for Excel

      1. Getting Started
      2. Using The Help File
      3. Top Dozen Functions
      4. Golden Rules
      5. Excel 2007
      1. Go To
      2. Function Selector
      3. CalculateFull
      4. Calculate WorkSheet
      5. Trace Facility
      6. Quick Paste Example
      7. Tutorials
      8. Function Finder
      9. Examples
      10. Help
      11. Excel"s Function Wizard
      12. Access Internet
      13. Usage of Functions (Audit)
      14. Uninstall
      1. Time Periods
      2. Inclusive and Exclusive Dates
      3. Using Daycount
      4. Examples of DayCount
      5. Annual Date Sequences
      6. ProjMode and Inclusive Dates
      7. Date Rolling Convention
      1. Rate Projections Functions Walkthrough
      2. Accruals and Cash
      3. Repeating Formulae
      4. Range Names and References
      5. Optional Parameters
      6. Using PmtsPerYear
      7. Modelling Seasonality
      8. Calculating Interest
      9. Using Business Functions in VBA (Visual Basic for Applications)
      10. Array Functions
      11. Volatility
      12. Annual Equivalent Rates
      13. Array Function
      14. Auto Multi Functions
      15. Variable Plurality
      16. GoalSeek
      1. Introduction To the Worked Examples
      2. Daycount
      3. General Projections
      4. Business Plans
      5. Cashbasis And Periods
      6. Using Timebases
      7. Using Dates
      1. How To Generate a time scale for a structured financing
      2. How To Project Rents off a Rental Forecast
      3. How To Run a model on different time bases
      4. How To Isolate The Cause of a Errors in Cells using Trace
      1. Introduction to the Utilities
      2. Audit
      3. Synchronized Range Insert/Delete
      4. Database Edit
      5. Insert Macro Button
      6. Link Analyser
      7. Range Describer
      8. PrintScript (beta)
      9. Create Local Range Name
      1. Number Formats
      2. Apply BF"s Color Palette
      3. Bullets
      4. Color Cells
      5. Conditional Formats
      1. Validation DropDowms
      2. Validation Standards
      1. Select Excel Function
      2. Array Function Tools
      3. Sort Sheets
      4. Range Value
      5. Named Range Manager
      6. Enforce WorkBook Settings
      7. Monte-Carlo
      8. TimeChart
      1. The ".ini" file
      1. Forum
      2. Online Help
      3. Templates
      1. Conversion of Input Strings to Values
      2. List of Holidays
      3. Acknowledgements and Trademarks
      4. Published Editions Changes in Behaviour
      5. Range Handling And Constraints
      6. Dates in Excel and Business Functions
      7. Old Composite DayCount Format
      8. DayCount in Excels"s Functions
      1. NPV of Annual To Periodic CashFlows - CorrectionM
      2. Interest - Simple, Annual, Continous and Discount Factors
      1. New Functions
      2. Obsolete Functions
      3. Discontinued Functions
      4. Deprecated Functions
    Interest - Simple, Annual, Continous and Discount Factors
    Mathematics of converting interest rates from one basis to another
    Key Terms:
    • A discount factor is equal to NPV (today)/Nominal Value (in the future). It is the factor by which you multiply the future cash flow in order to arrive at the Net Present Value.
    • The Continuous Discount Rate is the rate you get if you assume compounding takes place continually. It"s easiest to think of (although its not technically true) as the daily compounding rate. In other words, if you wonder what daily compounded rate would be equivalent to a certain end result, then that"s the continually compounded rate.
    • An Annual Equivalent Rate is the equivalent interest rate if interest were charged annually in arrears and compounded. It turns out that all interest rates have a period associated with them. (See Annual Equivalent Rates)
    • A Simple Interest Rate is any interest rate that is applied "simply" to a time period. An AER is equal to a simple interest rate charged over 1 year. In our terminology a simple interest rate always has a period or payments per year associated with it. So you can say "a rate of x% simple interest charged quarterly is equivalent to an AER of y% which is also equivalent to a daily, or continuous rate, of z%".

    To convert Simple Interest Rates to AER



    This formula is used in the function SimpleToAER.

    To convert AER to Simple Interest



    This formula is used in the function AERToSimple.

    To convert Simple Interest to Continuous



    This formula is used in the function SimpleToCont.

    To Convert Continuous to Simple



    This formula is used in the function ContToSimple.

    To convert AER to Continuous:



    This formula is used in the function AERToCont.

    To convert Continuous to AER



    This formula is used in the function ContToAER.

    To convert an AER to a Discount Factor



    This formula is used in the function AERToDF.

    To convert a Discount Factor to an AER



    This formula is used in the function DFToAER.

    To convert a Continuous rate to a Discount Factor



    This formula is used in the function ContToDF.

    To convert a Discount Factor to a Continuous Rate



    This formula is used in the function DFToCont.

    To convert a Simple rate to a Discount Factor



    This formula is used in the function SimpleToDF.

    To convert a Discount Factor to a Simple Rate



    This formula is used in the function DFToSimple.

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