Introduction to Financial Math Using the HP-12C Calculator

Teaches you financial math using the HP-12C, the calculator authorized for use in the CFA® exam. Material explaining the capital markets weaves through the subject matter, making the book especially valuable as an introduction to financial math.

Topics include time value of money, computing interest and return on investment, comparing bond yields. Covers discounted cash flow (DCF) analysis. Includes answers to exercises and appendices on basic algebra and the HP-12C calculator. View full-size front and back covers.

GREAT FOR CFA-I EXAM REVIEW! If you've been using Excel or your company's system to do financial math on the job, you'll need to revisit doing math on your calculator before the CFA exam.

• Perform DCF analysis efficiently on your HP 12C calculator.
• Set up irregular cash flows.
• Analysis of accounting ratios.
• Compare bonds, annuities and other investments.
• Appendix offers a brush-up on the algebra of financial math. Topics include order of operations, parentheses, exponents, distributing, and factoring.
• Appendix on using the HP 12C calculator. Learn Reverse Polish Notation (RPN) and how to use RPN keystrokes to do financial math, step by step with your HP 12C.

Table of Contents

• The Capital Markets
• Time Value of Money
• Compound Interest
• Zero Coupon Bonds
• Capital Market Players
• Annuities and Perpetuities
• Coupon Bonds
• Recent Developments in the Capital Markets
• Irregular Cash Flows
• Modified IRR
• Multiple IRRs
• All-in-Cost and Yield-to-Maturity
• Interest Rates
• Simple Interest
• Nominal and Effective Interest Rates
• Comparing Bonds
• Holding Period Yield
• Bond Math
• Constantly Growing Cash Flows
• Appendix 1: Using Your Calculator
• Appendix 2: Algebra Brush-Up
• Answers

by Dr. Norman Toy
Paperback, 8-1/2 x 11 in., 180 pages. ISBN 1-89111268-6