TUTORIAL FOR CHAPTER 5:
THE RISK AND TERM STRUCTURE OF INTEREST RATES
Questions: 5th edition - 3, 9, 10, 11.
1. Risk premiums on corporate bonds are usually anti-cyclical; that is they decrease during
TUTORIAL FOR CHAPTER 17: BANKING AND THE MANAGEMENT OF FINANCIAL
INSTITUTIONS
1. Rank the following bank assets from most to least liquid:
a) Commercial loans
b) Securities
c) Reserves
d) Physical cap
TUTORIAL: MONETARY POLICY (CHAPTER 8)
Questions:
8.1.
8.2.
8.3.
8.4.
8.5.
8.6.
8-1.
State major tools and operations of monetary policy you know.
8-2.
What will happen with reserves and Ms if NBK sell
TUTORIAL FOR CHAPTER 3:
WHAT DO INTEREST RATES MEAN AND WHAT IS THEIR ROLE IN VALUATION?
Questions:
1. There are 4 types of credit instruments. Identify their major features.
2. How do you understand
TUTORIAL FOR CHAPTER 12: THE MORTGAGE MARKETS
1. What distinguishes the mortgage markets from other capital markets?
Securities in the mortgage markets are collateralized by real estate.
2. Most mortg
TUTORIAL FOR FOREIGN EXCHANGE MARKET
QUESTIONS:
1. If the European price level rises by 5% relative to the price level in the United States, what doest the theory
of purchasing power parity predict wi
TUTORIAL FOR CHAPTER 10: BOND MARKET
Theoretical Questions (taken from chapter 9 &10):
1.
2.
3.
4.
5.
6.
7.
8.
9.
Capital security exchange made up of computer networks.
STRIPS
Issued by business, usu
TUTORIAL CHAPTER 11
STOCK MARKET
Theoretical questions:
1. What distinguishes stocks from bonds?
2. Compare the problem of estimating stock cash flow to estimating bond cash flow. Which security
would
Sample problems for final exam
Some new sample problems will be added after we finish chapter 17
Problem 1.
You invested your savings in 6 % coupon bond with the face value of 1000 USD and 3
years mat
TUTORIAL FOR CHAPTER 9: MONEY MARKET
Problem 1.
You have to choose between the investing in two 1000$ face value discount Treasury bills: one is a 91-day
with the current bid-ask prices 970$-985$; ano
1. Name money market instruments
a. Treasury Bills
b. Federal Funds
c. Repurchase Agreements
d. Negotiable Certificates of Deposit
e. Commercial Paper
f.
Eurodollars
2. Specific bond features
3. Who i
Sample open questions (from all chapters studied)
Some more open questions will be included after we finish chapter 17
1. What is direct finance? (Chapter 1-2)
2. What is indirect finance? (Chapter 1-
Problem 1
As a trader working for a bank you participate in 26-week (182-day) Treasury bill auction. You have
$100 ml for this auction. You decide to submit noncompetitive bid for $50 ml and competiti
Questions and Problems on Duration and Interest rate risk.
Questions:
1.
What is the reinvestment risk?
(Reinvestment risk is the risk that as investors receive interest and principal payments on thei
VEHICLE SALES AGREEMENT
THIS VEHICLE SALES AGREEMENT is made this _ day of _, 20_, by and
among _ of _ (hereinafter known as
"Seller") and _, of _ (hereinafter known as "Buyer").
Buyer and Seller shal
Part IV: You find that a small business loan in the amount of 50,000 is the amount you need to purchase the restaurant location. After researching banks to find the best interest rate, you find that b
MATH 453
SOLUTIONS TO ASSIGNMENT 4 OCTOBER 7, 2004
Exercise 2 from Section 17, page 100 Using Theorem 17.2, A is closed in Y implies that it is the intersection of Y and a closed subset C of X: A = C
MATH 453
SOLUTIONS TO ASSIGNMENT 9 NOVEMBER 11, 2004
Exercise 6 from Section 28, page 181 X is a metric space, so it is Hausdorff. Thus X is compact Hausdorff and we need only check that f is a contin
MATH 453
SOLUTIONS TO ASSIGNMENT 1 SEPTEMBER 8, 2004
Exercise 4 from Section 3, page 28 (a) Reflexivity, symmetry and transitivity for follow from the corresponding properties for equality, so is an e
MATH 453
SOLUTIONS TO ASSIGNMENT 11 DECEMBER 3, 2004
Exercise 2 from Section 51, page 330 This is a special case of problem 3 below. Exercise 3 from Section 51, page 330 (a) The formula F(x, t) = (1 -
MATH 453
SOLUTIONS TO ASSIGNMENT 10 NOVEMBER 23, 2004
Exercise 5 from Section 30, page 194 (a) Let D be a countable dense subset of the metrizable space X. I claim that B = cfw_B(x, 1/n) | x D and n Z
MATH 453
SOLUTIONS TO ASSIGNMENT 6 OCTOBER 16, 2004
Exercise 4 from Section 20, page 127 (a) Since each of their component functions are continuous, all three of f , g and h are continuous when R is g
MATH 453
SOLUTIONS TO ASSIGNMENT 2 SEPTEMBER 20, 2004
Exercise 1 from Sections 12 & 13, page 83 We will show that A is open by exhibiting it as a union of open sets. For each x A, let U x be the open
MATH 453
SOLUTIONS TO ASSIGNMENT 5 OCTOBER 8, 2004
Exercise 4 from Section 18, page 111 We check that f is an imbedding; the argument for g is similar. f is clearly a bijection between X and f (X) = X
MATH 453
SOLUTIONS TO ASSIGNMENT 7 NOVEMBER 1, 2004
Exercise 3 from Section 23, page 152 Let B = A A . Then B is connected for each since A and A are connect and have a point in common. Now B = A A an
MATH 453
SOLUTIONS TO ASSIGNMENT 8 NOVEMBER 6, 2004
Exercise 2 from Section 26, page 171 (a) Let X be a subspace of R in the finite complement topology, and let cfw_U be an open cover for X. Pick a p
Math W4051: Problem Set 1 due Wednesday, September 12 1. Let d1 and d2 be two metrics on the same set X with the property that there exist constants C, C > 0 such that C d1 (x, y) d2 (x, y) C d1 (x, y
Math W4051: Problem Set 2 due Wednesday, September 19 Reading: Munkres, Ch.1, 7, and Ch.2, 12-17. 1. Munkres 13, exercises 1 and 3 on p.83. 2. Munkres 16, exercise 3 on p. 92. Note: All the spaces bel
Math W4051: Problem Set 3 due Wednesday, September 26 Reading: Munkres, Ch.2, 18-22. 1. Munkres, Ch.2 17, exercises 6, 7, 8, 14, 15, 20 on p. 100-102. 2. Munkres, Ch.2 19, exercises 3, 7 on p. 118. 3.
Math W4051: Problem Set 4 due Wednesday, October 3 Reading: Munkres, Ch.3. 1. Define an equivalence relation on the space X = R2 - cfw_0 as follows: (x1 , y1 ) (x2 , y2 ) if and only if there exists k