UGBA 103 Assignment _2

# UGBA 103 Assignment _2 - UGBA 103 Haas School of Business...

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UGBA 103 Summer 2010 Haas School of Business John Gonzales Assignment #2 (Due June 1) All bonds have a par of \$1,000. 1. Do problems 2-15 through 2-17, 2-20, 2-27 and 2-28 on pages 76-78 of the text. For 2-20(a), you need to calculate the annual payment. You do not need to set up the amortization schedule. 2. Do problems 3-3 through 3-6, 3-10, 3-11 and 3-12 on pages 115-117 of the text. 3. Find the price of a 14-year bond that has a coupon of 7.50% and par of \$1,000. The market interest rate is 7.21%. 4. Find the price of a 14-year, \$1,000 par, zero-coupon bond given that the market interest rate is 7.21%. 5. Find the new price of the bond in (3) if the market interest rate decreases to 6.88%. 6. Find the new price of the bond in (3) if the market interest rate increases to 7.70%. 7. Find the price of a 4-year bond that has a coupon of 8.44% (paid quarterly) and par of \$1,000. The market interest rate is 7.80%. 8.

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UGBA 103 Assignment _2 - UGBA 103 Haas School of Business...

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