MATH 2K03, Solution Assignment 4
Exercise 1: For the zero-coupon bond with a semi-annual yield rate j , we have
20
5, 083.49 = 10, 000j
Solving for j gives us j = 3.44%. For the coupon bond, sold at p
Lecture 4
0
Math 2FM3, Fall 2016, Lecture 4
1.5 Eective and Nominal Rates of Discount
So far, all interest amounts were paid or charged at the end of the
compounding period. Interest payable in arrea
Lecture 1
0
Math 2FM3 Fall 2016 Lecture 1
Ch. 1. Interest Rate Measurements
A component that is common to virtually all financial transaction is
interest, the time value of money.
Interest refers to
Lecture 5
0
Math 2FM3, Fall 2016, Lecture 5
1.6 The Force of Interest
Let us again consider a continuous-time framework, i.e. financial
transaction take place in a continuum of time.
Let A(t) denote
Lecture 6
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Math 2FM3, Fall 2016, Lecture 6
1.7 Inflation and The Real Rate of Interest
Inflation is the rise in the general level of prices of goods and
services. It is a central indicator for a cou
MATH 2k03
Assignment Two
This assignment is due in the MATH 2K03 locker in the basement of Hamilton Hall by
11:59am (noon) on Monday October 17th, 2011.
Exercises TO BE HANDED IN:
Part 1: Brovermans 5
MATH 2K03, Fall 2011, Solutions Assignment Three
3.1.2 (3.1.6) 60 monthly payments. We will use the prospective form; the nal 20
payments are
1000(.98)40 , 1000(.98)41 , , 1000(.98)59 ;
thus
OB40 = 10
MATH 2K03, Fall 2011, Solutions Assignment 2
2.1.18 (2.1.16) Under Option 1 a single deposit is earning interest compounded annually and the accumulated value at then end of 24 years is 10, 000(1 + i)
MATH 2k03
Assignment Three
This assignment is due in the MATH 2K03 locker in the basement of Hamilton Hall by
11:59am (noon) on Monday October 31th, 2011. (NOTE: To make marking easier,
please solve t
MATH 2k03
Assignment One
This assignment is due in the MATH 2K03 locker in the basement of Hamilton Hall by
12:00pm on Monday Sept 26th, 2011.
Practice Problem ( NOT TO BE HANDED IN):
1. Go to the web
MATH 2K03
Assignment Four
Assignment 4 is due on Monday, Nov 14, at 11:59 am. Please submit your solutions in the
Math 2K03 lockers in the basement of Hamilton Hall.
Note: To make the marking easier,
MATH 2k03
Solution Assignment 1
1.1.8
(a) 1000 (1.12)t = 3000, whence t = lnln.3 = 9.694 (9 years and approximately 253
1 12
days).
(b) At the end of 9 years the accumulated value is 1000(1.12)9 = 277
Name: Text
ID #:
MATH 2K03: First Midterm (Sample Exam)
Version 1
Date: October 14, 2011, 10h30-11h20
Duration: 50 min
McMaster University First Midterm
This test includes 8 pages and 3 questions. You
Name: Sample
ID #:
MATH 2K03: Second Midterm (Sample)
Version 1
Instructor: Huibin Cheng
Date:
Duration: 50 min
McMaster University Second Sample Midterm
This test includes 8 pages and 3 questions. Yo
MATH 2K03
Assignment Five
Assignment 5 is due on Monday, Nov 28, at 11:59 am. Please submit your solutions in the
Math 2K03 lockers in the basement of Hamilton Hall.
Note: To make the marking easier,
Lecture 2
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Math 2FM3, Fall 2016, Lecture 2
(Section 1.1. continued)
1.1.3 Simple Interest
For a short period of time, simple interest is often considered,
instead of compound interest. At an interes