Seven-year government bond with a face value of $1000 and annual
coupon rate is 3%. Bond price is $939.98. The yield to maturity is 4%.
Calculate durations and modified durations. Confirm that modified
Calculate the NPV and the rate of return for each of the following investments.
The opportunity cost of capital is 20 percent for all four investments.
Initial cash flow,
Home assignment 1
1. Annuities Kangaroo Autos is offering free credit on a new $20,000 car. You pay
$2,000 down and then $600 a month for the next 30 months. Turtle Motors next
door does not offer free credit but will give you $2,000 off the list
Elements of the law of contract
Sample Examination Question 6
Andrew bought a used car from a Brendas Garage Ltd to use it for business matters, in the course of
business. In this course of dealing it means that Andrew is not buying the car or even using
Chapter 7 Minors
Necessaries x Necessities
Goods suitable to the minors condition in life and his actual requirements.
Liability is to pay reasonable price and not the actual contract price.
What is Necessary? Follow Certain Factors
Chapter 3 Consideration
Consideration gives the badge of enforceability to agreements.
Deed x simple contract
Definition of consideration in Currie v Misa a valuable consideration, in the sense of the law,
may consist either in some right, interest, profi
Home assignment 2
1. You are given annual rates of return of stock ABC, market portfolio M and risk-free
asset for years 2012-2016.
Market portfolio M
Chapter 2 The Offer
An offer is an expression of willingness to contract on certain terms. It must be made with the
intention that it will become binding upon acceptance. There must be no further negotiations
or discussions required.
Statement of Intentio