FINC 4630
Auburn University
Chapter 2
1
Promissory note
A written promise to repay a debt owed
2
6 Elements of a note
1.
Be in writing
2.
Be between a borrower and lender who have legal capacity
3.
State the borrowers promise to pay a certain sum of money
Case Exam - FINC 4630 Fall 2012
Each question is worth 10 points apiece.
1)
Assume a bond has 25 years left to maturity, it is a normal bond ($1000 maturity value with semiannual
interest payments), the coupon rate is 4% and its current price is $1156. a)
Case Exam Spring 2015 Name
Finance 4630
Answer 10 questions and each question is worth 10 points apiece.
Assume a bond has 30 years left to maturity, it is a normal bond ($1000 maturity value with semiannual
interest payments), the coupon rate is 9% and t
Case Exam - FINC 4630 - Fall 2013
Each question is worth 10 points apiece.
1)
2)
3)
4)
5)
6)
7)
Assume a bond has 20 years left to maturity, it is a normal bond ($1000 maturity value with semiannual
interest payments), the coupon rate is 6% and the bond
Case Exam - FINC 4630 Spring 2013
Each question is worth 10 points apiece.
1)
2)
3)
4)
5)
6)
7)
Assume a bond has 10 years left to maturity, it is a normal bond ($1000 maturity value with semiannual
interest payments), the coupon rate is 5% and the goin
Case Exam Fall 2014 Name
Finance 4630
Answer 10 questions and each question is worth 10 points apiece.
1) Assume a bond has 30 years left to maturity, it is a normal bond ($1000 maturity value with semiannual
interest payments), the coupon rat
Case Exam - FlNC 4630 Fall 2015 . Name
Each question is worth 10 points apiece.
1)
2)
3)
4)
5)
6)
7)
Assume a bond has 25 years left to maturity, it is a normal bond ($1000 maturity value with semiannual
interest payments), the coupon rate is 8% and the
Case Exam FINC 4630 Spring 2014
Each question is worth 10 points apiece.
1)
2)
3)
4)
5)
6)
7)
Assume a bond has 30 years left to maturity, it is a normal bond ($1000 maturity value with semiannual
interest payments), the coupon rate is 7 5/8% and the mark
jet/tee n
Case Exam-FINC 4630Spring 2012 Fl MC lat(30
Each question is worth 10 points apiece.
1) Assume a bond has 30 years left to maturity, it is a normal bond ($1000 maturity value with semiannual
interest payments), the coupon rate is 7% and its curr
Case Exam FINC 4630 ~ Spring 2016
Each question is worth 10 points apiece. You need to show your work to receive credit on calculations.
1)
2)
3)
4)
5)
6)
7)
Assume a bond has 29 years left to maturity, it is a normal bond ($1000 maturity value with semia
FINC 4630
Auburn University
Chapter 11
1
risk
Exposure to events or perils that can cause a financial loss.
2
risk management
Decisions about whether and how to protect against risk.
3
premium
The cost of obtaining insurance.
4
underwriters
From an insura
FINC 4630
Auburn University
Chapter 3
1
are Bank's Major Funding Source
Deposits
For all commercial banks, deposits are 67% of assets
For small banks (under $100 million in assets) deposits are 83% of assets
2
2 Types of Deposits
1.
Transaction Deposits
2
FINC 4630
Auburn University
Chapter 4
1
Check 21 & Substitute Checks
Effective October 28, 2004
Permits depository institutions to electronically transfer check images
The images are called substitute Checks and are legal copies of checks
2
Check 21 & Sub
FINC 4630
Auburn University
Chapter 5
1
Liquidity Risk
The ability of a financial institution to meet funding withdrawals or loan commitments in
a timely manner by selling assets or obtaining additional funding at a reasonable cost
2
Sources of the deman
FINC 4630
Auburn University
Chapter 6
1
Examples of Indicators for Purchased Liquidity
oHot money ratio
oDeposit brokerage index
oCore deposit ratio
oDeposit composition ratio
oLoan commitments ratio
2
Signals from the Marketplace Approach
Best standard f
FINC 4630
Auburn University
Chapter 7
1
Net Operating Income =
Net interest Income
- net noninterest expense
- provision for loan loss
2
Net Income =
Net Operating Income
+ Securities gains
- Taxes
3
R.E. =
N.E. - Dividends
4
Interest Income
Interest ear
FINC 4630
Auburn University
Chapter 8
1
Components of a Financial Plan
1. Budgeting and Tax planning
2. Managing your liquidity
3. Financing your large purchases
4. Protecting your assets and income (insurance)
5. Investing your money
6. Planning your ret
FINC 4630
Auburn University
Chapter 9
1
Sole Ownership (Ownership in Severalty)
Owned by just one person
2
Concurrent Ownership
Ownership by two or more persons at the same time
3
Tenants in Common
Shared ownership of a single property among two or more p
FINC 4630
Auburn University
Chapter 10
1
Real Property
Land and improvements made to the land and the rights to use them
2
Improvements
Any buildings, landscaping, and pipelines are considered this
3
Personal Property
Any item that is not real property -
Chapter11:
I.
ISCURVE:alocusofequilibriumpointsinthegoodsmarket.(L=M)
(Graph)
cfw_Downwardslopping
II.
LMCURVE:alocusofequilibriumpointsinthemoneymarket(I=S)
(Graph)
cfw_UpwardSlopping
III.
Equilibriuminbothmarkets(inastableEconomy):
GoodsMarketMoneymarke