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MA373 F11 Chapter 8 Homework

# MA373 F11 Chapter 8 Homework - of 100 per year 5 Number 1...

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Chapter 8 Homework Use the following chart for Questions 1-4: Years Spot Rate 1 2.0% 2 2.5% 3 2.9% 4 3.2% 5 3.4% 1. Calculate the present value of a five year annuity due with payments of 100 per year. 2. A five year bond pays annual coupons of 50 and matures for 1000. Calculate the price of the bond. Calculate the yield on the bond. 3. Complete the following table of f [s,t] : t ↓↓↓ s=> 0 1 2 3 4 1 Blank Blank Blank Blank 2 Blank Blank Blank 3 Blank Blank 4 Blank 5 4. Calculate the accumulated value of a five year annuity immediate with payments

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Unformatted text preview: of 100 per year. 5. Number 1 from Section 8.3 of the book 6. Number 2 from Section 8.3 of the book 7. Number 3 from Section 8.3 of the book 8. Number 6 from Section 8.3 of the book Answers 1. 473.16 2. 1074.94; 3.35% 3. t↓↓↓ s=> 0 1 2 3 4 1 .02 Blank Blank Blank Blank 2 .025 0.0300 Blank Blank Blank 3 .029 0.0335 0.0370 Blank Blank 4 .032 0.0360 0.0390 0.0411 Blank 5 .034 0.0375 0.0400 0.0415 0.0420 4. 541.06 5-8. See Book...
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