FINA3310-Review for midterm 2 - PV, FV, interest rates,...

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FINA3310-Review for midterm 2 20 multiple choice, true/false, and problems Theoretical Relationship(s) between the interest rates and PV,FV Relationship(s) between the PV and FV of ordinary annuities and annuities due The price of a bond next year relative to its price at this point if interest rates remain unchanged Premium, discount and bonds that sell at par Term structure of interest rates, yield curves, theories explaining the shape of the yield curve Interpretation of a yield curve when you are given a yield curve graph (i.e. what does it show about interest rates) Computational You should be able to calculate PV, FV, interest rates, number of periods for single cash flows, interest on interest
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Unformatted text preview: PV, FV, interest rates, number of periods and payments of ordinary annuities and annuities due Payment and total interest paid over the life of an amortized loan PV and FV of uneven cash flows The return of a stock using the SML and determine if the stock is fairly priced, overvalued or undervalued (based on the relationship between the expected return and the required return as given by the SML) The expected return of a portfolio formed by two or more securities PV and YTM for bonds making annual or semi-annual coupon payments...
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This note was uploaded on 06/02/2011 for the course FINA 3310 taught by Professor Staff during the Spring '08 term at Texas A&M University, Corpus Christi.

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FINA3310-Review for midterm 2 - PV, FV, interest rates,...

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