Mathematical Finance

INDEX

Abnormal performance alpha (OC_jt), systematic risk and, 339–340

Account payable (APY), 368

Account payable turnover (APT), 368

Account receivable (AR), 368, 371

Account receivable turnover (ART), 368

Accrued interest, of bonds, 321

Accumulated depreciation (D_k), 219

in amortization method, 229–230

in fixed-proportion method, 223–224

in sinking fund method, 231–232

in straight-line method, 220–223

in sum-of-digits method, 226–229

Accumulated present value interest factor (PV/FA), of bonds, 313–314

Acid-test ratio (QA), 370

Activity ratios, 367–369

Actual annual percentage rate (APR_a), 157

formulas for, 157–158, 199–200

Actual annuity split system, 159–160

Actual cash value (ACV)

formula for, 481

insurance and, 470–471, 472, 477

Adding decimals, 7

Add-on interest, formulas for, 199–200

Add-on interest loans, 156–157

Add-on payment, formula for, 199

After-tax cost of capital (CC_a), 357–358

formula for, 383

After-tax discount rate, 189

After-tax interest, 191

After-tax interest rate, 193

After-tax payments, present value of, 192

Age groups

commutation terms and, 436–437

in mortality tables, 432, 433

Algebraic approach, to break-even point, 257–261

Aliquots, 10–11, 54. See also Common aliquot and equivalent values

American Experience Table of Mortality, 431

Amortization, 148, 198

analysis of, 164–170

of bond premium, 317–319

formula and table methods for, 169–170

formulas for, 200–201

mortgage debt and, 164

sinking fund methods vs., 187–188

Amortization method

of depreciation, ...