Multiple Issues and Multiple Currencies

This page demonstrates how to model a case where there are multiple currencies and multiple debt issues. The case demonstrates how you can compute the effective yield in alternative currencies using the formula:

alternative currency interest rate = (1+other currency interest rate) * percent change in exchange rate – 1

along with the sculpting formula for the capture debt issue:

Debt service capture = Aggregate Dedibt Service/DSCR – Other Debt Service

Finally you can use the equation for the aggregate debt IRR from the aggregate debt service which includes a circular reference. I will continue this discussion, but for now I have included an example spreadsheet and also a video.

Excel File with Sculpting Example that Includes Multiple Currencies as well as Multiple Debt Issues

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Excel File with Exercise for Sculpting Example that Includes Multiple Currencies as well as Multiple Debt Issues