public void C7_11_1_PresentValue()
{
var Pn = 5.0 * Pow(10.0, 6);
var interestEngine = new InterestRateCalculator(7, 0.10);
Debug.WriteLine(interestEngine.PresentValue(Pn));
}
public double Price(double redemptionValue)
{
double pvCoupon = eng.PresentValueConstant(c);
double pvPar = eng.PresentValue(redemptionValue);
return(pvCoupon + pvPar);
}
// Price by adding 1) present value of coupon payments 2) PV of par/maturity
// at maturity date according to payments frequency
public double price(double redemptionValue)
{
// present value of coupon payments
double pvCoupon = eng.PresentValueConstant(c);
// present value of redemption value
double pvPar = eng.PresentValue(redemptionValue);
return(pvCoupon + pvPar);
}
public void C7_11_1_PresentValueOfSeries()
{
var interestEngine = new InterestRateCalculator(5, 0.0625);
var nPeriods2 = interestEngine.Periods;
var futureValues = new double[nPeriods2]; // For five years
for (long j = 0; j < nPeriods2 - 1; j++)
{
// The first 4 years
futureValues[j] = 100.0;
}
futureValues[nPeriods2 - 1] = 1100.0;
Debug.WriteLine("**Present value, series: {0} ", interestEngine.PresentValue(futureValues));
}
static void Main(string[] args)
{
int nPeriods = 6;
double P = Math.Pow(10.0, 7);
double r = 0.092;
var interestEngine = new InterestRateCalculator(nPeriods,
r);
var fv = interestEngine.FutureValue(P);
System.Console.WriteLine("Future Value: {0}",
fv.ToString("N", CultureInfo.InvariantCulture));
int m = 2;
var fv2 = interestEngine.FutureValue(P, m);
System.Console.WriteLine("Future Value with {0} compoundings per year {1}", m, fv2);
// Future value of an ordinary annuity
double A = 2.0 * Math.Pow(10.0, 6);
interestEngine.Interest = 0.08;
interestEngine.NumberOfPeriods = 15; // 15 years
System.Console.WriteLine("Ordinary Annuity: {0} ",
interestEngine.OrdinaryAnnuity(A));
// Present Value
double Pn = 5.0 * Math.Pow(10.0, 6);
interestEngine.Interest = 0.10;
interestEngine.NumberOfPeriods = 7;
System.Console.WriteLine("**Present value: {0} ",
interestEngine.PresentValue(Pn));
// Present Value of a series of future values
interestEngine.Interest = 0.0625;
interestEngine.NumberOfPeriods = 5;
int nPeriods2 = interestEngine.NumberOfPeriods;
double[] futureValues = new double[nPeriods2]; // For five years
for (long j = 0; j < nPeriods2 - 1; j++)
{ // The first 4 years
futureValues[j] = 100.0;
}
futureValues[nPeriods2 - 1] = 1100.0;
System.Console.WriteLine("**Present value, series: {0} ",
interestEngine.PresentValue(futureValues));
// Present Value of an ordinary annuity
A = 100.0;
interestEngine.Interest = 0.09;
interestEngine.NumberOfPeriods = 8;
System.Console.WriteLine("**PV, ordinary annuity: {0}",
interestEngine.OrdinaryAnnuity(A));
// Now test periodic testing with continuous compounding
double P0 = Math.Pow(10.0, 8);
r = 0.092;
nPeriods2 = 6;
for (int mm = 1; mm <= 100000000; mm *= 12)
{
System.Console.WriteLine("Periodic: {0},, {1}", mm,
interestEngine.FutureValue(P0, mm));
}
System.Console.WriteLine("Continuous Compounding: {0}",
interestEngine.FutureValueContinuous(P0));
// Bond pricing
double coupon = 50; // Cash coupon, i.e. 10.0% rate semiannual
// on parValue
int n = 20 * 2; // Number of payments
double annualInterest = 11.0; // Interest rate annualized
double parValue = 1000.0;
int paymentPerYear = 2; // Number of payments per year
Bond myBond = new Bond(n, annualInterest, coupon, paymentPerYear);
double bondPrice = myBond.Price(parValue);
System.Console.WriteLine("Bond price: {0}", bondPrice);
}
public static void Main()
{
// Future value of a sum of money invested today
int nPeriods = 6; // 6 years
double P = Math.Pow(10.0, 7); // Amount invested now, 10 million
double r = 0.092; // 9.2% interest per year
InterestRateCalculator interestEngine = new InterestRateCalculator(nPeriods, r);
double fv = interestEngine.FutureValue(P);
Console.WriteLine("Future Value: {0} ", fv.ToString("N", CultureInfo.InvariantCulture));
// Future value of a sum of money invested today, m periods
// per year. r is annual interest rate
int m = 2; // Compounding per year
double fv2 = interestEngine.FutureValue(P, m);
Console.WriteLine("Future Value with {0} compoundings per year {1} ", m, fv2);
// Future value of an ordinary annuity
double A = 2.0 * Math.Pow(10.0, 6);
interestEngine.Interest = 0.08;
interestEngine.NumberOfPeriods = 15; // 15 years
Console.WriteLine("Ordinary Annuity: {0} ", interestEngine.OrdinaryAnnuity(A));
// Present Value
double Pn = 5.0 * Math.Pow(10.0, 6);
interestEngine.Interest = 0.10;
interestEngine.NumberOfPeriods = 7;
Console.WriteLine("**Present value: {0} ", interestEngine.PresentValue(Pn));
// Present Value of a series of future values
interestEngine.Interest = 0.0625;
interestEngine.NumberOfPeriods = 5;
int nPeriods2 = interestEngine.NumberOfPeriods;
double[] futureValues = new double[nPeriods2]; // For five years
for (long j = 0; j < nPeriods2 - 1; j++)
{ // The first 4 years
futureValues[j] = 100.0;
}
futureValues[nPeriods2 - 1] = 1100.0;
Console.WriteLine("**Present value, series: {0} ", interestEngine.PresentValue(futureValues));
// Present Value of an ordinary annuity
A = 100.0;
interestEngine.Interest = 0.09;
interestEngine.NumberOfPeriods = 8;
Console.WriteLine("**PV, ordinary annuity: {0}", interestEngine.PresentValueOrdinaryAnnuity(A));
// Now test periodic testing with continuous compounding
double P0 = Math.Pow(10.0, 8);
r = 0.092;
nPeriods2 = 6;
for (int mm = 1; mm <= 100000000; mm *= 12)
{
Console.WriteLine("Periodic: {0}\t {1}", mm, interestEngine.FutureValue(P0, mm));
}
Console.WriteLine("Continuous Compounding: {0}", interestEngine.FutureValueContinuous(P0));
// Bond pricing
double coupon = 50; // Cash coupon, i.e. 10.0% rate semiannual on parValue
int n = 40; // Number of payments
double annualInterest = 0.11; // Interest rate annualized
int paymentPerYear = 2; // Number of payment per year
double parValue = 1000.0;
Bond myBond = new Bond(n, annualInterest, coupon, paymentPerYear);
double bondPrice = myBond.price(parValue);
Console.WriteLine("Bond price: {0}", bondPrice);
}