Assignment 7(1)

Assignment 7(1) - Maple T.A. - Gradebook

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System Homepage » Class Homepage » Student Details » Student Assignment Details ActSci 231 W09 : Gradebook Welcome Po-Wei Chuang [ My Profile ] Assignment detail for Po-Wei Chuang in Assignment 7: Po-Wei Chuang Login: pchuang Email: pchuang@uwaterloo.ca Student ID: 20260696 Assignments completed: 9 Assignments active: 0 Question Grade 1 A 1,100 par value bond has 8.5% semiannual coupons and matures on July 1, 2017 at 1,130. Find the clean price of this bond on October 15, 2013 to yield 6.5% compounded semiannually. Calculate to two decimal places using the straight line method (method 2 from class, "practical clean" from the textbook) and actual/actual for the time period. Your Answer: 1195.16 Correct Answer: 1195.16 Comment: Price on July 1, 2013: P1 = Fr * (1-v 8 ) / i + C * v 8 Price on Jan 1, 2014: P2 = Fr * (1-v 7 ) / i + C * v 7 Clean price on October 15, 2013 = (1-k) * P1 + k * P2 Fr = 46.75 i= 0.0325 C = 1,130 P1 = 1,199.63613 P2 = 1,191.874304 k = 106/184 Instructors Comment:
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Assignment 7(1) - Maple T.A. - Gradebook

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