Financial Modelling Smart Campus

This tutorial outlines the reasons for using index-linked debt instruments and demonstrates a way to model them, focusing particularly on index-linked bonds.

The complete 10 SMART Guidelines series is now available. Download the handbook and start creating SMART financial models today.

The debt service reserve account (DSRA) works as an additional security measure for lenders. It is generally a deposit which is equal to a given number of months projected debt service obligations. This tutorial explains how to code a transparent and efficient DSRA, and how it is linked to the financial statements without circular references.

Net present value (NPV) is a standard method of using the time value of money to appraise long-term projects and investments. This tutorial will discuss the principles of NPV calculation and the discount rate and, in particular, highlight how to calculate NPV without using the built-in functions in Excel. This achieves greater transparency and reduces the risk of errors.