Q3_983 - 9.80% 7.40% 9.20% 8.20% p.a. Accrued interest...

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BUS312 Quiz #3 Day Remaining coupons 25 25 25 25 Coupons per year 2 2 2 2 Next coupon in 5 5 5 5 months Par value $10,000.00 $10,000.00 $10,000.00 $10,000.00 YTM 9% 8% 10% 6% Coupons $450.00 $450.00 $450.00 $450.00 Sell in 6 6 6 6 years 9 9 9 9 months Reinvestment rate 9.2025% 8.1600% 10.2500% 6.0900% Compounded 1 1 1 1 per year Effective period yield 4.5000% 4.0000% 5.0000% 3.0000% half yearly reinv rate 4.5000% 4.0000% 5.0000% 3.0000% Short method Answer 8.8357% 7.8698% 9.7978% 5.9263% Long method Purchase price 10073.63 10851.81 9371.2 12674.26 Sale # coupons left 12 12 12 12 Selling price 10297.79 10746.6 9872.8 11721.83 FV of reinvested coupons 7951.92 7680.29 8234.37 7167.87 Total FV 18249.71 18426.9 18107.17 18889.7 HPRR 81.16% 69.80% 93.22% 49.04% eff monthly return 0.7363% 0.6558% 0.8165% 0.4939% APR compounded monthly 8.8357% 7.8698% 9.7978% 5.9263%
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BUS312 Quiz #3 Evening Par value $1,000.00 $1,000.00 $1,000.00 $1,000.00 Coupons left 33 33 33 33 Coupons/yr 2 2 2 2 Coupon rate
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Unformatted text preview: 9.80% 7.40% 9.20% 8.20% p.a. Accrued interest $35.00 $35.00 $35.00 $35.00 YTM 8.00% 8.00% 8.00% 8.00% p.a. Sell in exactly 7.5 7.5 7.5 7.5 years New YTM 9.80% 7.40% 9.20% 8.20% p.a. Reinvest coupons at 7.50% 7.50% 7.50% 7.50% p.a compounded 12 12 12 12 times/yr Coupon $49.00 $37.00 $46.00 $41.00 1 Fraction through period 0.71 0.95 0.76 0.85 1 r 4.00% 4.00% 4.00% 4.00% PV $1,196.38 $981.30 $1,142.48 $1,052.81 2 r at time of sale 4.90% 3.70% 4.60% 4.10% Selling price $1,034.76 $1,034.97 $1,034.81 $1,034.90 2 FV reinvested coupons Effective period rate 3.8091% 3.8091% 3.8091% 3.8091% 1 FV reinvested coupons $993.53 $756.74 $934.33 $835.66 1 Total FV $2,028.29 $1,791.71 $1,969.14 $1,870.56 HPRR 69.54% 82.59% 72.36% 77.67% 1 Annualised 7.2922% 8.3583% 7.5286% 7.9649% 1...
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This note was uploaded on 05/07/2010 for the course BUS 312 taught by Professor Alan during the Summer '03 term at Simon Fraser.

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Q3_983 - 9.80% 7.40% 9.20% 8.20% p.a. Accrued interest...

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