Maturity vlaue (face/par)

Number of years until maturity

Coupon Rate
Market rate
Number of payments per year
Settlement date
Maturity date
Selling Price

Period

INR 700,000.00
3
12%
14%
2
1/1/2009
1/1/2012
Rs. 666,634.22

Cashpaid
1/1/2009
30/6/2009
31/12/2009
30/6/2010
31/12/2010
30/6/2011
31/12/2011

INR
INR
INR
INR
INR
INR

42,000.00
42,000.00
42,000.00
42,000.00
42,000.00
42,000.00

Par value
yr
Discount rate

<--------------------

Market rate
Rs.
Rs.
Rs.
Rs.
Rs.
Rs.

46,664.40
46,990.90
47,340.27
47,714.09
48,114.07
48,542.06

Price(Settlement,maturity,rate,yield,redemption,frequency)

Amortization
-INR
-INR
-INR
-INR
-INR
-INR

4,664.40
4,990.90
5,340.27
5,714.09
6,114.07
6,542.06

Carry value of bond

Rs.

666,634.22
671,298.62
676,289.52
681,629.79
687,343.87
693,457.94
700,000.00

Debenture Redemption Model (at th

Modern textiles ltd , has to redeem debentures worth Rs.1 crore by paying Rs.30 lakhs at the end of
aforementioned payments ? The interest rate earned on the deposit account is 8% per annum
Amoun
Rs
Interest rate
Amount to be Deposited
Interest rate
Amount to be Deposited

10000000
8%
10000000 8th year
8% 9th year
955431.029807 10th year

Year Amount at the beginning Interest earned Deposit at the end

1
0
0 955431.029806802
2
955431.029806802 76434.4823845 955431.029806802
3
1987296.54199815 158983.72336 955431.029806802
4
3101711.2951648 248136.903613 955431.029806802
5
4305279.22858479 344422.338287 955431.029806802
6
5605132.59667838 448410.607734 955431.029806802
7
7008974.23421945 560717.938738 955431.029806802
8
8525123.20276381 682009.856221
-Rs. 3,000,000.00
9
6207133.05898491 496570.644719
-Rs. 3,000,000.00
10
3703703.7037037 296296.296296
-Rs. 4,000,000.00

Note1: Assume deposit at end of 1st year is 1 lakh which will change once you apply goal seek to give

Year Amount at the beginning Interest earned Deposit at the end

1
0
0 955431.029806802
2
955431.029806802 76434.4823845 955431.029806802
3
1987296.54199815 158983.72336 955431.029806802
4
3101711.2951648 248136.903613 955431.029806802
5
4305279.22858479 344422.338287 955431.029806802
6
5605132.59667838 448410.607734 955431.029806802
7
7008974.23421945 560717.938738 955431.029806802
8
8525123.2027638 682009.856221
-3000000
9
6207133.05898491 496570.644719
-3000000
10
3703703.7037037 296296.296296
-4000000

Debenture Redemption Model (at the end of year)

ore by paying Rs.30 lakhs at the end of 8th year, Rs.30 lakhs at the end of 9th year and Rs.40 lakhs at the end 1
deposit account is 8% per annum

3000000
3000000
4000000
Closing balance
955431.029806802
1987296.54199815
3101711.2951648
4305279.22858479
5605132.59667838
7008974.23421945
8525123.20276381
6207133.05898491
3703703.7037037
0

For goal seek, the cell to be c

hange once you apply goal seek to give you your actual deposit at the end
955431.029807
Closing balance
955431.029806802
1987296.54199815
3101711.2951648
4305279.22858479
5605132.59667838
7008974.23421945
8525123.2027638
6207133.05898491
3703703.7037037
-1.86264514923096E-009

s.40 lakhs at the end 10th year from now. How much should the firm deposit in a sinking fund account at the en

seek, the cell to be changed shouldn't be part of any formula?

g fund account at the end of every year for 7 years in order to meet the

Financial Cycle Planning

Inputs
Real risk free rate
working years
Real salary
Average age Expectancy

Outputs
PV or work years$1 Annuit
Pvof 1$ Infinite Annuity
Working PV/Infinite ratio
Date
Real salary
Real savings
Real consumption
Real human capital
Real financial capital
Total wealth

2.10%
35
75000
70

$24.61
$47.62
51.68%
0
30

1
31
75000
36237.67205244
38762.32794756

$1,845,825.14
$1,809,587.47
0 36237.67205244
$1,845,825.14
$1,845,825.14

Assume Re. 1 is consumption

2
3
4
5
32
33
34
35
75000
75000
75000
75000
36237.6720524363 36237.67205244 36237.67205244 36237.67205244
38762.3279475637 38762.32794756 38762.32794756 38762.32794756
$1,772,588.81
73236.3352179737
$1,845,825.14

$1,734,813.17
$1,696,244.25 $1,656,865.38
111011.97031 149580.8937389 188959.7645599
$1,845,825.14
$1,845,825.14 $1,845,825.14

6
7
8
9
10
36
37
38
39
40
75000
75000
75000
75000
75000
36237.67205244 36237.67205244 36237.67205244 36237.67205244 36237.67205244
38762.32794756 38762.32794756 38762.32794756 38762.32794756 38762.32794756
$1,616,659.55 $1,575,609.40
$1,533,697.20
$1,490,904.84
$1,447,213.84
229165.5916681 270215.7411455 312127.943762 354920.3026335 398611.3010412
$1,845,825.14 $1,845,825.14
$1,845,825.14
$1,845,825.14
$1,845,825.14

11
12
13
14
15
41
42
43
44
45
75000
75000
75000
75000
75000
36237.67205244 36237.67205244 36237.67205244 36237.67205244 36237.67205244
38762.32794756 38762.32794756 38762.32794756 38762.32794756 38762.32794756
$1,402,605.33 $1,357,060.04
$1,310,558.30
$1,263,080.03
$1,214,604.71
443219.8104155 488765.0984867 535266.8376073 582745.1132495 631220.4326802
$1,845,825.14 $1,845,825.14
$1,845,825.14
$1,845,825.14
$1,845,825.14

16
17
18
19
20
46
47
48
49
50
75000
75000
75000
75000
75000
36237.67205244 36237.67205244 36237.67205244 36237.67205244 36237.6720524
38762.32794756 38762.32794756 38762.32794756 38762.32794756 38762.3279476
$1,165,111.41 $1,114,578.75
$1,062,984.90
$1,010,307.58
$956,524.04
680713.7338189 731246.3942816 782840.2406139 835517.5577192 889301.098484
$1,845,825.14 $1,845,825.14
$1,845,825.14
$1,845,825.14 $1,845,825.14

21
22
23
24
25
51
52
53
54
55
75000
75000
75000
75000
75000
36237.6720524 36237.6720524 36237.6720524 36237.6720524 36237.6720524
38762.3279476 38762.3279476 38762.3279476 38762.3279476 38762.3279476
$901,611.05
$845,544.88
$788,301.32
$729,855.65
$670,182.62
944214.093604 1000280.26162 1057523.81917 1115969.49142 1175642.5228
$1,845,825.14 $1,845,825.14 $1,845,825.14 $1,845,825.14 $1,845,825.14

26
27
28
29
30
56
57
58
59
60
75000
75000
75000
75000
75000
36237.6720524 36237.6720524 36237.6720524 36237.6720524 36237.6720524
38762.3279476 38762.3279476 38762.3279476 38762.3279476 38762.3279476
$609,256.45
$547,050.84
$483,538.91
$418,693.22
$352,485.78
1236568.68783 1298774.30232 1362286.23473 1427131.91771 1493339.36003
$1,845,825.14 $1,845,825.14 $1,845,825.14 $1,845,825.14 $1,845,825.14

31
32
33
34
35
61
62
63
64
65
75000
75000
75000
75000
75000
36237.6720524 36237.6720524 36237.6720524 36237.6720524 36237.6720524
38762.3279476 38762.3279476 38762.3279476 38762.3279476 38762.3279476
$284,887.98
$215,870.63
$145,403.91
$73,457.39
$0.00
1560937.15864 1629954.51103 1700421.22781 1772367.74565 1845825.14036
$1,845,825.14 $1,845,825.14 $1,845,825.14 $1,845,825.14 $1,845,825.14

36
37
38
39
40
66
67
68
69
70
0
0
0
0
0
-38762.3279476 -38762.3279476 -38762.3279476 -38762.3279476 -38762.3279476
38762.3279476 38762.3279476 38762.3279476 38762.3279476 38762.3279476
$0.00
$0.00
$0.00
$0.00
$0.00
1845825.14036 1845825.14036 1845825.14036 1845825.14036 1845825.14036
$1,845,825.14 $1,845,825.14 $1,845,825.14 $1,845,825.14 $1,845,825.14

Saving for Retiremnent

Target balance
Current savings balance
Expected annual inflation
Planned savings increment
Expected dividend incom
Expected capital apprecia
Ordinary income tax on di
Capital gains tax
current age
Retirement age

1000000
100000
3%
2%
2%
6%
15%
15%
30
65

Annual savings
Number of installments
Target balance in future years
Final after tax balance less target balance

Yr beg Balance Annual saving Dividend Income

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23

24
25
26
27
28
29
30
31
32
33
34
35

Capital appreciation

year end balance after dividend tax

tax basis