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Improve your financial model with best practice Index-linked bonds

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

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DSRA – Debt Service Reserve Account

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.

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Calculate NPV without Excel functions

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.

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Working capital – financial modelling of trade debtors and creditors

It is important to recognise the trade debtors and trade creditors in a cash flow financial model because they capture the cash cycle of a company. This is important since not all revenue earned in a given period is received in the same period, and that not all costs are paid as soon as they are incurred.

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Using goal seek macro to achieve maximum debt limit

This tutorial demonstrates how the maximum debt limit can be solved based on a target debt service cover ratio (DSCR) when modelling a project finance project. This exercise indicates the maximum debt size that can be supported by a certain cash flow available for debt service (CFADS) profile.

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