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Price of Bond with irregular long first coupon period

You should be able to do it manually very quickly in Excel, or write a simple VBA program. For example, consider a bond that pays $10 a year for five years starting 5 years from today, and then $100 ...
MRR's user avatar
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Calculating the Nominal Rate of Return of a dividend paying stock

The return over one period (day, week, month, etc.) for a stock is: ret(t,t+1) = [P(t+1) + D(t+1) - P(t)] / P(t) where P(t) is the stock price at the start of the period, P(t+1) is the stock price at ...
MRR's user avatar
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1 vote

Why is EPS looked at much more than FCF/S (Free Cash Flow Per Share)

FCF typically refers to "free cash flow" and is a flow, not a stock, variable. So, there is no free cash flow at a point in time. FCF only exists over a period (month, quarter, year, etc.). ...
MRR's user avatar
  • 81
1 vote

How to mitigate systematic risk?

Puts are one way to hedge long market risk. To eliminate systemic (beta) risk more generally, you need to establish a 0-beta position. The first question is: Which beta? The answer depends on the ...
MRR's user avatar
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2 votes
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Is there a theoretical advantage for market cap weighted index funds over equal weighted index funds?

Yes, there is a theoretical advantage for market cap-weighted index funds over equal-weighted index funds under the Capital Asset Pricing Model (CAPM) and the Modern Portfolio Theory. In this answer, ...
xuhdev's user avatar
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6 votes

Is there a theoretical advantage for market cap weighted index funds over equal weighted index funds?

Any of the indexes you are likely to find funds that track are going to be market cap weighted. The Dow Jones Industrial Average is just about the only equal weighted index you'll come across. There ...
Justin Cave's user avatar
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Legal/Ethical Dilemma (Splitting an Investment Property)

Pete B has mentioned various other things to consider already. I want to focus just on the core question of how to handle the financial arrangements. When it comes to ownership of the joint project, I ...
Arno's user avatar
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5 votes

Legal/Ethical Dilemma (Splitting an Investment Property)

The key here is whatever is decided, you need to have a legal contract drawn up that covers the 5 "Ds". Even if some of the situations do not apply currently, this is probably a long-term ...
Pete B.'s user avatar
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Is term or whole life better?

The other answers are spot on. I'd just add that generally speaking, the higher the commission paid to the salesperson, the worse the product is for a consumer. (vacation timeshares are another ...
Rocky's user avatar
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2 votes

Is term or whole life better?

The key here is you have a need for life insurance as you have one dependent child. Unless this child is 17.5 years old and has no interest in college you will need more than 20K. If the unthinkable ...
Pete B.'s user avatar
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5 votes

Is term or whole life better?

What does that mean exactly? Exactly what they say, buy a much cheaper term life policy (most people don't actually need life insurance their entire life) and put whatever else you would have spent ...
D Stanley's user avatar
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