"AST1CAL3 EQUATION VARIABLE |N 7 0N|","02-27-1993","22:09:24"
"FREQCONV=12/PAYMNINT NPERIODS=FREQCONV*NUMYEARS RATE%PER=ANNRATE%/FREQCONV AVEPAY#A=RND(VALUDEBT/(1-(1+RATE%PER/100)^-NPERIODS)/100*RATE%PER) INTDUE=RND(OUTSTP#A*RATE%PER/100) NREDEEM=FIX(0.5+(AVEPAY#A-INTDUE)/FACEVALU) OUTSTP#B=OUTSTP#A-NREDEEM*FACEVALUE PERPAY#A=NREDEEM*FACEVALUE+INTDUE"
"AMORTIZATION, EXTINCTION OF BONDED DEBTS, DISCHARGE DEBT.      An INTEREST BEARING BOND DEBT is AMORTIZED by a sequence of usually unequal     payments which pay interest and redeem a certain number of bonds at face value. A SCHEDULE for EXTINCTION is a table which shows distribution of each payment.  ANNRATE% is the nominal annual interest rate. FACEVALU is bond's face value.    NUMYEARS is the term in years. OUTSTP#A is the outstanding princ. at beginning  of period. PAYMNINT is payment interval in months. VALUDEBT is the debt's value.OUTSTP#B is princ.'s value at end of period. PERPAY#A is payment due.  INTDUE isinterest due at end of period. NREDEEM is number of bonds redeemed in period.       PERIOD      OUTSTND PRINC      INT DUE      # BONDS     PERIODIC                            at beginning        at end      retired     PAYMENT                   1           $30,000           $2400        92         $11,600                   2            20,800            1664        100         11,664                   3            10,800             864        108         11,664             *** Answers to problems ***      (c) PCSCC, Inc., 1993                          (a) Set ANNRATE%=8, FACEVALU=100, NUMYEARS=3, OUTSTP#A=30,000, PAYMNINT=12,     VALUDEBT=30000. Move cursor to OUTSTP#A and type =outstp#b (ent) twice.  The    Table is shown above. If OUTSTP#B<0 then decrease redeemed bonds by 1 and       decrease PERPAY#A by 1 face value.  Type any key to exit.                                      ||(a) Construct an extinction schedule for the 3 annual payments required to discharge $30,000 in the form of $100 bonds bearing 8% interest.    Type , to see answers.  Type (F2) to return to helpfile."
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