FINA 3001 Final Exam Review Topics
The Finance View of the Firm
Types of Firms
Sole Proprietorships- one owner, strict control over monetary policy and management, takes all
Partnerships- two or more people that share the risk and reward
You would want to use a flattener in this case. This would mean you want to buy long-ter
As is consistent with part (a), we would short the 2-year zero and buy the 10-year zero.
BONDS HOMEWORK 1
The bond market and bond pricing basics
Please turn in one copy per group. Please do not submit this printout along with your homework.
Please show your work.
The bond market
1. The United States is the worlds largest issuer of debt, foll
(1+ y ) (1+ y)
Effective annual yield:
EAY =(1+ IRR semiannual) 1
Annual coupon interest
Bills do not pay coupons
They are quoted on a discount basis