Reverse partial calculation … - Posted by HankM
Posted by HankM on June 16, 1999 at 11:52:16:
I’ve never actually needed this before, but it may be a solution for a problem, the question is am I calcing it right. My thought is to compute the value of the partial as “usual” at my buy rate and then compute a PV on that value as if it were a balloon occuring at the time space of the proposed purchase.
Int 8% face
If I bought 60 pmts at 15%, I get $30,843.89; now if this is at origination and I’m actually buying payments 61-120, I’d discount the 30,843.89 as if it were a balloon with int=15%, pmt=0,term=61 and FV=30,843.89, giving $14,456.62
Am I thinking straight?