Basic information
I
The exam will be closed book and closed notes.
I
The exam will cover material from lecture 1-6.
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You are allowed to use a calculator (but not a computer nor a smart
phone).
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You can use a cheat sheet (one-sided, 8.27 in 11.7 in), whi

Business Finance 4223: Fixed Income
Practice Problems Solutions
Thien T. Nguyen
1
Valuation Basics
1. Suppose that you are given the following information on bond prices:
Bond Time-to-Maturity
A
0.5
B
1
C
1.5
D
2
Coupon Rate Price
5%
100.45
6%
100.79
10%

Bond Trading
Business Finance 4223
Thien T. Nguyen
Fisher College of Business
The Ohio State University
Nguyen (Ohio State)
Bond Trading
1 / 37
Introduction
Introduction
In the last couple of classes, we talked about how to price Treasury bonds
and how to

Interest Rate Swaps and Floating Rate Bonds
Business Finance 4223
Thien T. Nguyen
Fisher College of Business
The Ohio State University
Nguyen (Ohio State)
Swaps & Floaters
1 / 36
Introduction
Todays Topics
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Interest Rate Swaps
I
I
Swap fixed interest pay

Bond Valuation
Business Finance 4223
Thien T. Nguyen
Fisher College of Business
The Ohio State University
Nguyen (Ohio State)
Bond Valuation
1 / 37
Introduction
Our Focus Today
I
During the previous lecture, we discussed a number of different types
of bon

Duration and Convexity
Business Finance 4223
Thien T. Nguyen
Fisher College of Business
The Ohio State University
Nguyen (Ohio State)
Duration & Convexity
1 / 35
Introduction
Introduction
I
I
Today, we will focus on the sensitivity of Treasury bond prices

Spot & Forward Rates
Business Finance 4223
Thien T. Nguyen
Fisher College of Business
The Ohio State University
Nguyen (Ohio State)
Forwards
1 / 30
Introduction
An Example
In six months, you will graduate from Fisher. Your parents have promised
you a $100

Business Finance 4223: Fixed Income
Practice Problems
Thien T. Nguyen1
These problems are meant to allow you to practice the concepts learned in class and do
not have to be turned in. While these problems do not have to be turned it, it is highly
recommen

Introduction to Fixed Income
Business Finance 4223
Thien T. Nguyen
Fisher College of Business
The Ohio State University
Nguyen (OSU)
Course Introduction
1 / 30
About me
I
I
Joined OSU in 2014
Background
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I
I
Before PhD
I
I
I
Undergraduate in Math and Eco

Fisher College of Business
The Ohio State University
Business Finance 4223
Fixed Income
Fall 2016
Professor:
Thien T. Nguyen
Office Hours:
By appointment
Office:
814 Fisher Hall
E-mail:
nguyen.1391@osu.edu
TA:
Brad Cannon
E-mail:
cannon.270@osu.edu
Course

Business Finance 4223
Fall 2013
Assignment #1
Treasury Bonds and Trades
Due Date: November 5, 2013
The focus of this assignment is to understand how to construct portfolios of Treasuries and
to hedge interest rate risk. You will need to use a spreadsheet

Business Finance 4223
Assignment #1
Treasury Bonds and Trades
Due in class on October 8, 2016
The focus of this assignment is to understand how to construct portfolios of Treasuries and
to hedge interest rate risk.
You can work in a group of 1 4 people. E