Text book questions for Chapters 1, 2 and 5
Chapter 1
All check point questions (answers are provided in the text book)
Questions and Problems: 1- 6, 8 - 20 (answers for the starred problems are pro
Name:
ID #:
MATH 2FM3 First Midterm
EXAMPLE EXAM
Instructor: Petar Jevtic
Duration: 50 min
McMaster University First Midterm
This test includes 16 pages and 3 questions. You are responsible for ensuri
MATH 2FM3: Midterm Test
Instructor: David Lozinski
Date: July 13, 2017
Duration: 75 min.
Name: g 9! (2T [wg ID #1_*_
Instructions:
This test paper contains 12 multiple choice questions printed on both
Name:
ID #:
MATH 2FM3 First Midterm
EXAMPLE EXAM
Instructor: Petar Jevtic
Duration: 50 min
McMaster University First Midterm
This test includes 16 pages and 3 questions. You are responsible for ensuri
Name:
ID #:
MATH 2FM3: Example Final Exam
Duration: 3h
McMaster University Final Examination
This test includes 18 pages and 8 questions. You are responsible for ensuring your copy
of the test is comp
Name:
ID #:
MATH 2FM3 Second Midterm (Example Exam)
Instructor: Petar Jevtic
Duration: 50 min
McMaster University Second Midterm
This test includes 6 pages containing instructions, questions, solution
Name:
ID #:
MATH 2FM3 Second Midterm (Example Exam)
Instructor: Petar Jevtic
Duration: 50 min
McMaster University Second Midterm
This test includes 8 pages containing instructions, questions, solution
Cash Flow diagram; try to use this on every question
So at time 1, money is worth less (interest rate)
So PV of C1 is 100 / (1+r)
Hence,
Similarly,
100 now is worth more at time 1
FV of C0 at time 1 i
Derivative instruments (or simply derivatives) are a category of financial instruments that
includes options, futures, forwards and swaps
While there is general agreement among financial practitioners
0-0
Math 2FM3 Spring 2015
Ch. 1. Interest Rate Measurements
A component that is common to virtually all nancial transaction is interest,
the time value of money.
Interest refers to the rent paid by
Net present value (NPV) is the difference between the present value of cash inflows and the
present value of cash outflows, based on some compounding rate i
NPV analysis is sensitive to the reliabilit
The present value of a growing annuity formula calculates the present day value of a series of
future periodic payments that grow at a proportionate rate.
A growing annuity may sometimes be referred t
Lecture 2.1
0-0
Math 2FM3 Spring 2015
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 arrears is
Math 2FM3 Introduction to Mathematical Finance
Information Sheet (Spring 2015)
LECTURE
Monday & Wednesday 7:00-10:00 pm HH/302
May 4 to June 17, inclusive
CLASS MATERIAL: Available through Avenue to L
September 23, 2016
MATH 2FM3
Assignment 2
This assignment is due in the MATH 2FM3 locker in the basement of Hamilton Hall by
3:00pm on Monday Oct 10th, 2016.
1. Broverman Textbook, 6th Edition, exerci
Text book questions for Chapter 6
Check point questions: 6.2 to 6.7. (answers are provided in the text book)
Questions and Problems: 1- 7, 9 to 11, 13 to 28, 30 to 33, 36 to 39 and 43 to 45 (answers
Selected Solutions for Chapter 5 and 6 numerical problems
This document contains numerical answers for problems from Chapters 5 and 6 for
which the solutions are note provided in the text book.
CHAPTE
Accounting and Finance (AEW)
Revision summary by Michael Prior-Jones
Cash Flow Forecast:
Description of projected incomes and expenditures over a given period.
Provides information that informs the pr
The future value (FV) of an annuity with continuous compounding formula is used to calculate
the ending balance on a series of periodic payments that are compounded continuously.
Understanding the fut
x 3 02(90 Lao/cfw_CS 0 O OeCSou CF 130]
WM my COL/(pow (' 3 mg, 44 C501
Wad? cfw_war (0% y M)
Ma [02; Q; r aJoQ c/WJ (Qaf,
Ocw? p/LACxpc fe7 KIM/1f
O 3/0113 Cw? 9/5 WOWZEAK
(up?
3 M, 57% ,4 W Comm?
u Aaa A 32 30M c/Lumqr-(Caj @
f
p O 2 3? f9 .16st
715 \$ cfw_AWW C) 7
0W gym/La
[f of cm (cg/G ogl/a/bm 0 7 3
:Ct CZWW Qj/bfe Luv/bx W5 Cu (Cu/Mm
/ 0.452
1(9
1? $263,C07(H'j/2> - 333289/
m . 1. ?
WW
November, 2016
MATH 2FM3
Assignment 5
This assignment is due in the MATH 2FM3 locker in the basement of Hamilton Hall by
3:00pm on Monday December 5th, 2016.
1. The following data provide the estimate
October 24th, 2016
MATH 2FM3
Assignment 3
This assignment is due in the MATH 2FM3 locker in the basement of Hamilton Hall by
3:00pm on Thursday Nov 3rd, 2016.
Exercises TO BE HANDED IN:
2. Broverman T
November, 2016
MATH 2FM3
Assignment 4
This assignment is due in the MATH 2FM3 locker in the basement of Hamilton Hall by
3:00pm on Thursday November 17th, 2016.
1. A 500$ bond, paying interest at rate
5% I4, aCCou/Cf QWAS CM (En/waxy cfw_awe [\caz? cf 72
YOU WM Wk? Cc CQZfbsnL a 7174.2 M o]0 Co
MAMA 7L0 peaco 55000 of low 27xw37
How 001/1 LS ho OZZY/oosf w? K S "5 [$5000 77% emm W. k 929 CW7 dea 6
Math 2FM3, Winter 2017, Lecture 10
2.2.3 Continuous Annuities (Continued)
Example: In 2004 and 2005 you deposit 12 every day and in 2006 you deposit 15 every
day. The eective annual interest is 9% in