Index

add-in 47

American option 221, 233

annuity 57, 75

annuity loan 59, 69

application event 377

arbitrage 197

argument 357

arithmetic operator 292

array 382

array as parameter 392

array element 382

array formula 21, 247

assertion 343

asset 121

assignment statement 275

autofill 11

AVERAGE 80, 128

backstage view 4

bear spread 236

beta 107, 125, 130

binary search 399

BINOM.INV 244

BINOMDIST 229

binomial distribution 45, 243

binomial model 226, 251

Black-Sholes model 231

bond 166

breakpoint 342

bull spread 225

butterfly 237

call option 221

call-by-reference 360

call-by-value 357

capital gain 140

capital market line 99, 104

capitalization rate 149

CAPM 107, 125, 201

cash flow 64, 133, 150

cash flow matching 182

central limit theorem 231

chart 28

circular reference 16, 210

code window 261

column chart 28

combination of options 223

comment 11, 273

comparable 211

component 405

conditional formatting 13

confidence level 112

constant 276

control 405

control structure 310

control structure for repetition 322

convexity 178

CORREL 84, 110

correlation 82

correlation coefficient 83

cost of capital 124

cost of debt 129

cost of equity 125

coupon 166

COVAR 83, 89

covariance 83, 93

covariance matrix 86, 88

covered call 237

credit rating 190

credit risk 188

custom list 11

data analysis 51, 84, 249

data table 41, 246

data type 280

data validation 14

date 287

DDB 138

debt 124

debug toolbar 343

Debug.Print 279

debugging 340

declaring array 383

declining-balance method 121, 138

default 189

default risk 129

depreciation 121, 133, 137

dialogue box 343

discount rate 132

discounted cash flow model 200

discrete distribution 245

diversification 82, 96

dividend model 127, 195

do…loop until 327

do…loop while 327

do until…loop 325

do while…loop sentence 322

duration 171

DURATION 173

duration matching 182

dynamic array 390

EBIT 205

EFFECT 62

effective interest rate 61

efficient frontier 99

efficient portfolio 100

enterprise value 205

equation 7

equity 124

equivalent annual income 75

erase function 391

error handler 372

error in VBA 338

estate 147

European option 221, 233

event handler 374

Excel 1

excel object model 295

Excel table 31

exercise price 221

expected resale price 156

expected return on bond 189

expenditure 133

field list 33

filtering 10, 36

flow of control 310

flowchart 310

for each…next 332

for…next 328

formatting 12

formatting date 290

formula 15

free cash flow to equity 200

free cash flow to firm 204

freeze pane 5

FREQUENCY 24, 247

frequency table 25

f-test 51

function 19

function procedure 354

funding cost 132

future value 55, 58

FV 59

getting help 335

goal seek 46, 123, 169, 183

Gordon model 127, 195, 203

gross income multiplier 149

growing perpetuity 57

hedging 181

HLOOKUP 246

hungarian notation 410

identity matrix 101

IF 23

if…else…end if statement 313

if…end if statement 310

iif function 314

immediate window 340

immunization 181

in the money 221, 234

INDEX 20

index 382

inflation 135

initialization 384

input box 346

intellisense 336

internal rate of return 66

intrinsic value for option 234

inverse matrix 101

investment 64, 121

IPMT 59

IRR 19, 68, 71, 144

iterative calculation 17

junk bond 190

key tip 9

leverage 157

library function 47

lifetime of variable 280

linear depreciation 137

linear search 398

logical error 340

logical expression 316

long position 221

loop 322

Macaulay’s modified duration 172

macro 264

macro recorder 264

MACRS 138

market portfolio 99, 103

market risk 96

market risk premium 110

MATCH 20

matrix algebra 90

matrix formula 91

matrix formula 91

maturity date 221

MAX 77, 247

MDETERM 25

MDURATION 176

message box 344

method 294

Miller-Modigliani 132, 207

MIN 247

MINVERSE 25, 101

MMULT 25, 91, 102, 191

modal form 420

modeless form 420

modified duration 176

modules 272

Monte Carlo simulation 241

multi-dimensional array 389

multiple 211

named argument 364

negative leverage 159

net operating income 149

net present value 64, 136

new window 5

NOMINAL 62

nominal interest rate 135

normal distribution 243

normal distribution 45, 112

NORMDIST 112

NORMINV 113, 241, 243

NORMSDIST 233

NPER 60

NPV 56, 65, 144, 167

object 294

object browser 337

OFFSET 89

operator 292

operator precedence 293

opportunity cost 134

option 221

option dialogue box 4

option explicit 276

optional argument 364

options base 384

out of the money 221, 234

par value 166

parameter 356

payback period 73

peer sale 148

perpetuity 57

pivot chart 39

pivot table 32

PMT 59, 69

portfolio 90

portfolio model 86, 98

portfolio return 91

portfolio variance 91

PPMT 59

present value 55, 58

present value profile 66, 72

PRICE 170

price book-ratio 214

price earnings-ratio 212

price sales-ratio 215

principal 166

printing 8

pro forma model 207

procedure 272

procedure 354

procedure call 354

project explorer window 260

properties window 261

property 147

property 294

protective put 224

pseudocode 324

put option 222

put-call parity 226

PV 59, 167

quick access toolbar 4

RAND 242

RANDBETWEEN 242

random number 242

RATE 68, 69, 168

rate of return 55

real estate 147

real interest rate 135

reducing balance method 138

regression line 111

rent 148

repayment plan 59

required rate of return 64

resale price 153

reversion value 153

ribbon 3

risk 79

risk free rate 125

risk neutral probability 226, 251

risk premium 125

risk-free asset 99

run-time error 339

scatter chart 30

searching 397

select case 319

selection sort 400

sensitivity analysis 46

separation theorem 207

short position 221

shortcut key 9

slicer 37

SLN 138

SLOPE 109

solver 47, 95

sorting 10, 36, 397

sparkline 31

spreadsheet 3

SQRT 102

standard deviation 79

standard module 262

statement 272

static variable 279

status bar 4

STDEV 20, 80

STDEVP 80

stepping through code 341

stock 195

straddle 236

straight–line depreciation 137

strangle 224

string 283

string function 284

string operator 285

subroutine 272

SUM 23

SUMPRODUCT 20, 89, 102

sunk cost 134

syntax error 338

synthetic stock 236

systematic risk 96

tab 3

tax 137

tax shield 122

template 5

term structure 183

terminal value 153

terminating loop 333

testing 340

time value for option 234

time value of money 55, 183

TODAY 57

TRANSPOSE 25, 102

trendline 85, 111

t-test 52

type conversion function 291

type declaration character 283

uniform distribution 242

unique risk 96

unsystematic risk 96

userform 404

valuation 119

value 274

value at risk 112

value of a bond 166

value parameter 357

variable 274

variable declaration 274

variable name 275

variable scope 278

variance 79, 86

VBA 255

Visual Basic Editor 255

VLOOKUP 77, 246

volatility 174

WACC 124, 132, 205

what-if analysis 46, 183

workbook 3

workbook event 375

worksheet event 376

wrap text 9

XIRR 68

XNPV 57

YIELD 169

yield curve 185

yield to maturity 167

zero-coupon bond 172, 184