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Unformatted text preview: PV ) 1 t r = (349 . 67 / 320) 1 / 31 = 0 . 03 d. Present value PV = FV (1 + r ) t = 2 , 430 (1 + 0 . 05) 3 = 720 2 2. PV = C [ 1 . 071 . 07(1 + 0 . 07) 30 ] = 100 , 000 C = 8 , 058 . 64 3. Price = PV = 2 , 000 + 400[ 1 . 12 121 . 01(1 + 0 . 01) 48 ] = 17 , 189 . 58 4. Coupon = 1 , 000 × . 09 = 90 P1 = PV = 90[ 1 . 061 . 06(1 + 0 . 06) 3 ]+ 1 , 000 (1 + 0 . 06) 3 = 240 . 57+839 . 62 = 1 , 080 . 19 P = PV = 90[ 1 . 061 . 06(1 + 0 . 06) 2 ]+ 1 , 000 (1 + 0 . 06) 2 = 165+890 = 1 , 055 r.r. = 90 + 1 , 0551 , 080 . 19 1 , 080 . 19 = 0 . 06 5. a. (104+22/32)%*1000=1046.875 b. (104+21/32)%*1000=1046.5625 c. ﬁnd the r where 1046 . 875 = 35 / (1 + r ) + 35 / (1 + r ) 2 + 1000 / (1 + r ) 2 d. 35/1046.875 3...
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 Spring '08
 Chen,J
 Economics, Time Value Of Money, Mathematical finance, Vperpetuity −P Vannuity, inf lation rate

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