RSM435: Fall 2014
Section L0101: Tuesdays 9-11am
Tuesday, September 30, 2014
Student Number:
Formulas:
Rc = m ln(1+Rm/m)
Rm = m (eRc/m 1)
The forward rate for the period between times T1 and T2 is
A forward rate agreement (FRA) that was entered into some

RSM435: Fall 2014
Section L0201: Tuesdays 11am-1pm
Tuesday, September 30, 2014
Student Number:
Formulas:
, where I is the present value of income during the life of the forward contract
The spot price of a stock is $10. The stocks next dividend of $0.43 w

RSM435: Fall 2014
Section L0301: Tuesdays 3pm-5pm
Tuesday, September 30, 2014
Student Number:
Formulas:
, where I is the present value of income during the life of the forward contract
You entered a forward contract several months ago. Under the terms of

RSM435: Fall 2014
Section L5101: Wednesdays 7-9pm
Wednesday October 1, 2014
Student Number:
Formulas:
, where I is the present value of income during the life of the forward contract
The current price of a bond is 90% of face value. The bonds coupon rate