Pset 6 sol - Solution to C298 Practice Problem Set#6(2010W 1 so the realized return will be r = = = 2 16.67 so the realized return will be r = = =

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Solution to C298 Practice Problem Set #6 (2010W) 1. so the realized return will be r= = = 16.67% 2. so the realized return will be = = 16.63% 3. = = = $21 4. = 30 = 6 ! 30g = 3 g = 0.10
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5. We know that F = 1000, c = 0.07, and cF = 70. First, we must calculate the price of the bond today: =7 0 = 672.25 + 231.71 = 903.96 Then, we can calculate our realized return over the past year: r = 0 6. a) D = 1.00 1 D = 1.00(1.18) = 1.18 2 D = 1.18(1.12) = 1.3216 3 D = 1.3216(1.12) = 1.480192
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This note was uploaded on 09/01/2011 for the course COMM 298 taught by Professor Freedman during the Spring '09 term at The University of British Columbia.

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Pset 6 sol - Solution to C298 Practice Problem Set#6(2010W 1 so the realized return will be r = = = 2 16.67 so the realized return will be r = = =

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