Assignment 7(3)

# Assignment 7(3) - 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 An eight-year \$5,000, 6% bond with semiannual coupons and redemption value \$4,800 is bought at a price to give the investor an annual effective yield rate of 12%. Find the base amount (coupon amount * j). Your Answer: 8.7451 Correct Answer: 2572.87585 Comment: Base amount=Coupon / j, where j=(1+yield rate)^1/2-1. Instructors Comment: 0.0 2 A 14-year bond has a 6% coupon rate and pays semi-annual coupons. Its face value is 1,500.The bond can be called at any coupon date between 5 years and maturity. An investor is willing to pay 1,634.74 for this bond. What is the guaranteed yield rate (nominal, compounded twice a year) for this investment? (Give an answer of the form 0.xxxx).

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## This note was uploaded on 03/24/2010 for the course ACTSC 231 taught by Professor Chisholm during the Winter '09 term at Waterloo.

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Assignment 7(3) - Maple T.A. - Gradebook

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