Hi ,did anyone know how to calculate the discount factor?
I did search for the formula of this Factor = 1 / (1 x (1 + Discount Rate) ^ Period Number)
however when I refer to Open tuition notes SBR (September 2021 to June 2022 exams )example answer 3 convertible debentures the formula seems not correct .How to get the answer ?
1/(1 x(1+6%)6^1=0.142 (my calculation but in the year 1 answer is0.943 in year 1