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 provided in the text
book. For the remaining questions, in
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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 ensuring your copy
of the test is complete. Bring any discrep
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 ensuring your copy
of the test is complete. Bring any discrep
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 complete. Bring any discrepancy to the attention of your in
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, solutions and formula sheet.
You are responsible for ensuring y
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, solutions and formula sheet.
You are responsible for ensuring y
Math 2FM3, Winter 2017, Lecture 15
3.2 Amortization of loan repayment with level payments
So far we had arbitrary payments K1 , K2 , ., Kn . Now we consider the easier case with
constant level payments of K.
Suppose a loan L is taken at time 0 and is to
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, exercises: 2.1.18, 2.1.28, 2.2.14, 2.2.17, 2.3.15,
2.4.7
1
September 9th, 2016
MATH 2FM3
Assignment 1
This assignment is due in the MATH 2FM3 locker in the basement of Hamilton Hall by
3:00pm on Thursday Sept 22nd, 2016.
1. Broverman Textbook, 6th Edition, exercises: 1.1.10, 1.2.15, 1.4.4, 1.5.7, 1.6.2, 1.7.2.
1
MATH 2fm3
Solution Assignment 2
2.1.18 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)24 .
Under option 2, the 10,000 is the present value of an annuity-immediate
Future Value
Years
Annual Rate
$100,000
25
11%
Present Value
7,360.81
Present Value
Future Value
Annual Rate
Number of Years
($32,000)
$100,000
13%
9.3229942177
Present Value
Future Value
Years
Annual Rate
($27,000)
$100,000
28
4.79%
Count
0
1
2
3
4
5
6
7
The present value of a growing annuity formula calculates the present day value of a series of
future periodic payments that grow at a proportionate rate.
A growing annuity may sometimes be referred to as an increasing annuity.
A simple example of a growi
November, 2016
MATH 2FM3
Assignment 4
This assignment is due in the MATH 2FM3 locker in the basement of Hamilton Hall by
3:00pm on Thursday November 17th, 2016.
1. A 500$ bond, paying interest at rate r = 8%, is redeemable at par (it means that the
redemp
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 estimated end-of-year net cash flows that will be
received from
Chapter 6 Summary
The Term Structure of Interest Rates
1. Term structure of interest rates = relationship between the time to maturity and yield on fixed
income securities such as T Bills.
a. Such yields change over time due to many economic factors.
b. A
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 as to which instruments are
considered derivatives and
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 Textbook, 6th Edition, exercises: 3.1.2, 3.1.13, 3.2.13,
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 is 100 (1+r)
Hence,
From these formulas, we can derive:
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 reliability of future cash inflows that an investment or project
Math 2FM3, Lecture 18
3.4 Applications and Illustrations
Let us consider again the case of a loan with principal repaid after n periods, the
sequence of payments received by the lender is L i (n 1) times and L + L i in the
end. Suppose the lender sells t
Math 2FM3, Lecture 20
4.1.3 Bond Prices between Coupon Dates
In practice bonds are traded daily not only before the coupon payments.
Regard coupon period as unit of time and find the price of a bond Pt , 0 t 1 with t
measured from the last coupon paymen
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 effective annual interest is 9% in 2004 and 2005 and 12% in 2006 with daily
compounding
Math 2FM3, Winter 2017 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 the rent paid by a borrower of money to a lender of money over
Math 2FM3, Winter 2017, Lecture 9
2.1.3 Annuity Immediate and Annuity Due
Valuation of a level series of equally spaced payments (i.e. annuity) depends on : 1) the
number of payments. 2) the valuation point. 3) the interest rate per payment.
So far we h
Math 3FM3, Winter 2017, Lecture 3
1.4 Nominal Rates of Interest
Nominal rate of interest is the rate of interest for the whole period which induces a
rate of interest for the compounding period, which is only a fraction of the year.
Example: You have an
Math 2FM3, Winter 2017, Lecture 8
2.1.2 Present Value of an Annuity
Example: You want to open a saving account with a single deposit today so that you
can withdraw 1000 per year for 4 years, starting 1 year from now. Find the amount you
have to deposit i
Math 2FM3, Winter 2017, Lecture 4
1.5 Effective 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 the standard way.
However, in some transactions interest
Math 2FM3, Winter 2017, 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 again the accumulated value of an investment at time t. The amou
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The UK remains highly attractive for US dealmakers
US/UK M&A Deal Monitor, 2H 2016 Update
For future copies of this publication, please sign up via our link at
www.deloitte.co.uk/usukdealcorridor
Contents
Preface
3
The Deloitte US/UK M&A Dea
MASTER OF FINANCE
CURRICULUM OVERVIEW 2017
FALL 2015
RSM4310
RSM4216
RSM4319
Foundations of Finance (Laurence Booth)
Financial Reporting and Financal Statement Analysis (Ramy Elitzur)
Forecasting Risks and Opportunities (Tom McCurdy)
SPRING 2016
Jan Apr
R
Responsibility Accounting, ROI, RI (12 marks)
Habari Supermarket Inc. had the following 3 major divisions:
Sales
Average Operating Assets
Operating Income
Minimum Required Rate of
Return
1.
Grocery
$ 600,000.00
$ 200,000.00
$ 30,000.00
Cosmetics
$ 750,000