For nearly 20 years, since the emergence of PCs, Lotus 1-2-3, and Microsoft Excel in the 1980’s, spreadsheet models have been the dominant vehicles for finance professionals in the business world to implement their financial knowledge. Yet even today, most Corporate Finance textbooks rely on calculators as the primary tool and have little (if any) coverage of how to build spreadsheet models. This book fills that gap. It teaches students how to build financial models in Excel. | Spreadsheet Modeling in Corporate Finance To accompany Principles of Corporate Finance by Brealey and Myers CRAIG W. HOLDEN Richard G. Brinkman Faculty Fellow and Associate Professor Kelley School of Business Indiana University Prentice Hall Upper Saddle River New Jersey 07458 To Kathryn you re the inspiration and to Diana and Jimmy with joy and pride. Craig CONTENTS Preface Part 1 Time Value of Money Chapter 1 Single Cash Flow Present Value Future Value Problems Chapter 2 Annuity Present Value Future Value System of Four Annuity Variables Problems Chapter 3 Net Present Value Constant Discount Rate General Discount Rate Problems Chapter 4 Real and Inflation Constant Discount Rate General Discount Rate Problems Chapter 5 Loan Amortization Basics Sensitivity Analysis Problems Part 2 Valuation Chapter 6 Bond Valuation Basics By Yield To Maturity System Of Five Bond Variables Dynamic Chart Problems Chapter 7 Stock Valuation Two Stage Dynamic Chart Problems Chapter 8 The Yield Curve obtaining It From Bond Listings using It To Price A Coupon Bond using It To Determine Forward Rates Problems Chapter 9 . Yield Curve Dynamics Dynamic Chart .