Bond Prices
Annual coupon
Today is Dec 15, 2009 and you are considering a
7% annual coupon bond with a face value of $1,000
and a maturity date of Dec. 15, 2016.
Calculate the market price for this bond if the
required rate of return on similar risk bonds
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CHAPTER 11
Exercise 11.2
1. The derivatives are: fx = 2x + y , fy = x + 4y , fxx = 2, fyy = 4, and fxy = 1. The rst-order
condition requires that 2x + y = 0 and x + 4y = 0. Thus we have
x = y = 0
z = 3
implying
(which is a minimum)
2. The derivatives are:
Ex. 7.3 4,5,6
Ex. 7.4 1,2,3,4,5,6,7
Ex. 7.5 1,2,3
Ex. 7.6 1,2
Ex. 8.1: 1,2,3,4,5,6
Ex. 8.2: 1,2,3,4,5,6,7
Ex. 8.3: 1,2,3
Ex. 8.4: 1,2,3,4,5
Ex. 8.5 All Problems
Ex 8.6 All Problems
Ex 9.2 1,2,4
Ex 9.3 2,3,6
Ex 9.4 3,5,6
Ex 9.3: 4,5
Ex 9.4: 2,4
Ex 9.5 and
Problem Set from Exercises 4.1, 4.2, 4.3, 4.4
September 22, 2012
Excerise 4.1
Q1
Looking again at the general one product market model in (3.1)
Qd = Qs
Qd = a bP
Qs = c + dP
So writing this as the system in (4.1) mean putting the endogenous variables with
help guide from Exercises 4.4, 4.5, 4.6
September 22, 2012
Excerise 4.4
Q1
See the answer key, but simple matrix addition will show you how this is done.
Q2
The answer is no on this, and in case you dont see it, the commutative law states that the sum of
Jay Patel
Econometrics Final
project
ECON_4355_001
12/04/12
Problem: Does the smuggling of cocaine into the U.S. affect the
level of violence?
Years: 2000-2010
Independent Variable: Estimated murder and nonnegligent manslaughter totals by year
Dependent V
Jay Patel
ECON_4355_001
12/4/12
Professor Parker
According to conventional wisdom, drug production fuels violence. But does
coca production explain different levels of violence within America? For my research
topic I plan on discussing the rate of cocaine
Jay Patel
Project Proposal
For my research topic I plan on discussing the rate of cocaine being smuggled into the
US having an impact on violent crimes in America. In particular I will be focusing on the
violent crime total, Murder and nonnegligent mansla
Jay Patel
Weights
25%
75%
DV X
State
Great
Avg
Poor
ProbabilityReturn A Return B
25%
10%
25%
30%
16%
10%
45%
20%
15%
Expected return
Variance
Standard dv
Covariance
Correlation
16.30%
0.001611
4.01%
-0.00153
-0.679185
return on weighted mean Portf
Varianc
Principle
Quoted Price
Coupon rate
Frequency
Maturity date
1000
1037.9
0.082
2
1/15/2007
Coupon payment over the period
Bond purchase date
Previous coupon date
Number of days since last coupon
Next coupon date
Number of days between coupons
41
2/26/2001
1
The University of Texas at Dallas
Introduction to Financial Modeling FIN3390
Laptop Section
Fall 2012 Course Syllabus
Course Information
Course Number/Section:
Course Title:
Term:
Day & Times:
Classroom:
Computer Lab (for exams)
FIN3390-002 Laptop Section
Econ 4355 Fall 2012
Problem Set 8 Solutions
1. We say zt is stationary if:
E [zt ] = t for all t and
Var [zt ; zs ] = f (jt sj) for all t; s:
We say that an AR(p) process:
zt =
1 zt 1
+
+
p zt p
+ et
has a unit-root if
1
p
1
= 0:
2. In time-series data, t
Econ 4355 Fall 2012
Problem Set 6 Solutions
1.
Homoskedasticity :
Heteroskedasticity :
Var [ui ] =
Var [ui ] =
2
2
i
2. Income, prices, etc.
3. The t-statistic will not have the correct size because the OLS standard error is inconsistent in the case of he