Assume a monthly pre-disability income of \$4,750 and an insurance policy providing \$3,500. If during the period of residual disability the earnings are \$2,250 per month, the policy will pay \$921 during the period of residual disability. The calculation is as follows: Read More
Assume the following example: a yearly 6.5% coupon paying bond that matures in 5 years is currently selling for \$1,050. The Yield to Maturity (YTM) is 5.3344%, here's how to calculate: Read More
First, it's important to note that the investment decision process consists of the following components: Read More
Assume that a stock is currently selling for FMV of \$50, and you purchase a put for \$2 with a \$40 exercise price that expires in three months. Read More
The Price/Earning to Growth Ratio or the PEG ratio is calculated as (price/earnings ratio) / (earnings growth rate). The PEG ratio is useful because it standardizes P/E ratios for growth. It gives a relative measure of value and facilitates comparing firms with different growth rates. Read More