Kai Wang kfw5143
FINAN 521 Homework 3
Chapter 8: Answers to Questions and Problems
3,
Bond Value = PV of coupons + PV of par
100*1.05=1000*0.064*0.5cfw_ [1- 1/(1+r)(15-2)*2 ] + 1000 /(1+r)(15-2)*2
1050 = 32 *cfw_ [1- 1/(1+r)26 ] + 1000 /(1+r)26
R=2.92279%
Kai Wang kfw5143
FINAN 521 Homework 1
Chapter 4: Answers to Questions and Problems
4.
FV=PV(1+r)t ;
r=(FV/PV)1/t -1; r = (307/242)1/4-1;
r=(FV/PV)1/t -1; r = (896/410)1/8-1;
r=(FV/PV)1/t -1; r = (162181/51700)1/16-1;
r=(FV/PV)1/t -1; r = (483500/18750)1/2
FINAN 521 Homework 4 (2 points)
Chapter 11: Questions and Problems
4. Investment in X = $7,800, Investment in Y = $2,200
9.a.E(Rp)=7.43%,b.p2=.02717,p=16.48%.
16.a.E(Rp)=8.55%,b.XS=0.4425,XRf=0.5575c.p=0.796
27. a. E(RP) = 13.50%, b. P = 48.27%
Chapter 13