Bond Practice Problems II 1. Seven years ago your firm issued $1,000 par value bonds paying a 7% semi-annual coupon with 15 years to maturity. The bonds were originally issued at par value. a. What was the original yield to maturity on the bonds? They were issued at par…so the YTM = Coupon rate: 7% b. If the current price of the bonds is $875, what is the yield to maturity of the bonds TODAY? 1000 FV .07(1000)÷2= PMT (15-7)*2 = N -875 PV I/Y = 4.623*2 = 9.25% c. If the yield
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MBA/MFM 253 TVM Practice Problems 2 Fall 2011 1. You are considering buying a new car. The current price of the car is $25,000. The dealer has offered you a special nominal interest rate of 3% each year for the next 3 years if you finance through the dealership. a) What is your monthly car payment? PV = 25,000 I = 0.25 N = 36 FV = 0 PMT =? = $727.03 25,000 = PMT (1-(1/(1.0025)36))/.0025 b) You are considering putting a $5,000 down payment on the car, what would your payment be if
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MATH 364A: Ordinary Differential Equations (Midterm 1) Name: Student ID: Signature: Question 1 (40 points) Solve the following initial value problems. (a) y + t3 y = t3 y(0) = 0. (b) y = − (1+x) y y(−1) = 1. Question 2 (40 points) Solve the second-order initial value problem 2y − 3y − 5y = 0 y(0) = 0 2 y (0) = 1. Question 3 (40 points) For each equation below, first determine whether the equation is exact or not exact. If the equation is exact, find the solution.
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estimates for the approximation of the physical solution by the upscaled one. They are presented in the energy norm. They give the approximation error as a power of " and guarantee the validity of the upscaled model. We use the Laplace transform in time to get better estimates than in our previous article [20] and to undertake the study of important Danckwerts' boundary conditions. Keywords: Taylor's dispersion; large Peclet number; singular perturbation; Laplace's transform; adsorption chemical
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which physics experienced after Newton's subsequent synthesis. At the beginning of the last century, mathematical ideas and techniques were spread to theoretical and applied physics by the influence of two of the greatest mathematicians of all times, D. Hilbert and H. Poincar6, being then at the zenith of their careers. Their ability to establish very deep at first glance often hidden connections between a priori separated branches of science convinced physicists to adopt and work with the
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| Lab 1: 1D Cellular Automaton | ECE 5760 | | Lucas Ackerman (lba36) Weiqing Li (wl336) | 9/16/2011 | Introduction The purpose of this lab was to design a hardware implementation of an elementary cellular automaton and display the evolving state of that automaton on a VGA screen (with a minimum resolution of 320x240). In the implementation, there was to be a way for the user to set the evolution rule which defined how each new generation formed from the previous generation. Additionally
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ME3291 NATIONAL UNIVERSITY OF SINGAPORE ME3291 – NUMERICAL METHODS IN ENGINEERING (Semester 2 : AY2013/2014) Time Allowed : 2 Hours INSTRUCTIONS TO STUDENTS: 1. Please write your Student Number only. Do not write your name. 2. This assessment paper contains FOUR (4) questions and comprises FOUR (4) printed pages. 3. Students are required to answer ALL FOUR (4) questions. 4. Students should write the answers for each question on a new page. 5. This is a CLOSED-BOOK
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Cite all resources consistent with APA guidelines. Term Definition Resource you used Time value of money Is the idea that money available at a present time is worth a lot more then the amount that its is in the future due to the “potential earning capacity”. The core principle of finance is provided money is able to earn interest and any money received sooner is worth more. Investopedia - Time Value of Money - TVM. (2014). Retrieved from http://www.investopedia.com/terms/t/timevalueofmoney
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Time Value of Money Terminology Terminology (AKA jargon) can be a major impediment to understanding the concepts of finance. Fortunately, the vocabulary of time value of money concepts is pretty straightforward. Here are the basic definitions that you will need to understand to get started (calculator key abbreviations are in parentheses where appropriate): Banker's Year A banker's year is 12 months, each of which contains 30 days. Therefore, there are 360 (not 365) days in a banker's year. This
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2 Valuation 3 The Time Value of Money Contents n n n Objectives After studying Chapter 3, you should be able to: n The Interest Rate Simple Interest Compound Interest Single Amounts • Annuities • Mixed Flows Understand what is meant by “the time value of money.” Understand the relationship between present and future value. Describe how the interest rate can be used to adjust the value of cash flows – both forward and backward – to a single point in time. Calculate both the future
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