Returns and Bond Ratings

Week 6 - Lottery PV Calculation

Strayer Lottery Jackpot Present Value Calculation
Input	Value	Formula/Note
Total Jackpot	$0.00	Given
Number of Payments	0	Given
Annual Interest Rate	0%	10% quoted annual
Compounding	Monthly	12 periods per year
Annual Payment	ERROR:#DIV/0!	Jackpot / Number of Payments
Effective Annual Rate	0	EAR = (1+r/m)^m - 1
Present Value (PV)	ERROR:#DIV/0!	Annuity Due formula: PMT * [(1 - (1+r)^-n)/r] * (1+r)

Week 6 - Bond Ratings

Bond Ratings Research
Rating	Strengths	Weaknesses	Approx. Yield
AAA
BBB
CCC
D