1.
What is the name of the branch of accounting concerned with
providing managers and administrators with information to
facilitate the planning and control of business operations?
a. Management accou
Bond G Sold for Settlement on June 16, 2104
Annual Coupon
Coupon Payment frequency
Interest Payment Dates
Maturity Date
Day-Count Convention
Annual Yield-to-Maturity
5%
Semiannual
10 April and 10 Octo
The following information relates to Questions 1-4
A bond with 5 years remaining until maturity is currently trading for 101 per 100 of par value. The bond offers a 6%
coupon rate with interest paid s
1.
2.
365-day year bank certificate of deposit has an initial principal amount of USD 96.5 million and a
A
redemption amount due at maturity of USD 100 million. The number of days between settlement a
Sample problems
Fixed Income Strategies BUSI 3460U
Chapter 5
1.
2.
3.
What is a negative covenant? What is an afirmative covenant?
What is meant by the agency problem with regards to company managemen
T-Bill Pricing Canada
1. Calculate the Annualized interest rate of the following Canadian T-Bills: Par Value = $1,000
Time to Maturity
6 Months (181 days)
6 Months (181 days)
3 Months (90 days)
3 Mont
1
Chapter 3 Introduction to Fixed-Income
Valuation
1. An investor considers the purchase of a 2-year bond with a 5% coupon rate, with interest
paid annually. Assuming the sequence of spot rates shown
Sample problems
Fixed Income Strategies BUSI 3460U
Chapter 7
1.
Suppose that the structure for an assetbacked security transaction is as
follows:
senior tranche $220 million
subordinate tranche 1 $50
Version 1
Q1
Assume you buy a 5year, $10,000 par value bond with a 3.5%
annual coupon rate for $9,556.69. The bond is currently
yielding 4.5%. What is the coupon payment if the bond pays
interest semi
BUSI3460U MidTerm Topics to Review
Financial Calculators allowed
1 page (double sided) Equation reference sheet allowed
Chapter 1
Basic features of a bond
Issuer types
Maturity (tenor) short term, int