ADM 3345 - Tax I
December 15, 2007
Please identify your section:
Section A: Day class with Prof. Kathryn Pedwell
Section B: Night Class with Prof. Julia Andrukaitis
Student Name: _
Student I.D.: _
Question # 2
Question # 3
Questions on Bond Pricing
3. Answer the following questions.
(a) The portfolio manager of a tax-exempt fund is considering investing $500,000 in a debt
instrument that pays an annual interest rate of 5.7% for four years. At the end of four
years, the port
ADM 3351 B Midterm Exam Winter 2007 (1 hour 20 minutes) Dr. C. Guo Name (print legibly) _ Student Number _
Closed- book exam. No material of any kind is allowed. A calculator is required. The formula page can be detached and need not submit. Statement of
Multiple Choice Questions
1. Which of the following is not a characteristic of a money market instrument?
C) long maturity
D) liquidity premium
E) C and D
Answer: E Difficulty: Easy
Rationale: Money market instruments are sho
Multiple Choice Questions
1. The expected return/beta relationship is used _.
A) by regulatory commissions in determining the costs of capital for regulated firms
B) in court rulings to determine discount rates to evaluate claims of lost future
In this chapter we describe basic principles underlying the management of
assets relative to liabilities, popularly referred to as asset/liability
management. The key concept is the bond portfolio imm
Corporate Debt Instruments
1. Answer the following questions.
(a) What are the corporate bond classifications used by bond information services?
Corporate bonds are classified by the type of issuer. The four general classifications used by
Treasury and Agency Securities Markets
1. What are the differences among a Treasury bill, Treasury note, and Treasury bond?
Fixed-principal Treasury securities are fixed-income principal securities that include Treasury
bills, Treasury notes, and Treasury
Term Structure of Interest Rates
1. In the September 13, 1996, Weekly Market Update published by Goldman, Sachs & Co.,
the following information was reported in various exhibits for the Treasury market as of
the close of business Thursday, September 12, 1
Duration and Convexity
2. Calculate the requested measures in parts (a) through (f) for bonds A and B (assume that
each bond pays interest semiannually):
Bond A Bond B
Yield to maturity
Questions On Yield Measure
1. A debt obligation offers the following payments:
Years from Now Cash Flow to Investor
Suppose that the price of this debt obligation is $7,704. What is the yield or internal rate of
MORTGAGE PASS-THROUGH SECURITIES
The pass-through mortgage securities are the subject of this chapter. A
mortgage pass-through security, or simply a pass-through, is created when
one or more mortgage holders form a collection (p
Residential Mortgages Loans
1. Answer the following questions.
(a) What are the sources of revenue arising from mortgage origination?
Originators may generate income for themselves by charging an origination fee. This fee is
expressed in terms of points,
Collateralized Mortgage Obligations
1. How does a CMO alter the cash flow from mortgages so as to shift the prepayment risk
across various classes of bondholders?
CMOs redirect cash flows from a pass-through to various bond classes making it possible to
What is a mortgage?
A loan secured by the collateral of specified real estate property
Obliges the buyer to make predetermined series of payments
A mortgage gives the lender the right of foreclosure on the loan if the
Active Bond Portfolio Management
10. Answer the following questions.
(a) What is meant by systematic risk factors?
Risk factors affecting an index can be classified into two types: systematic risk factors and
nonsystematic risk factors. Systematic risk fa
3. Why is asset/liability management best described as surplus management?
Asset/liability management is best described as surplus management because it aims at keeping
and acquiring assets that are greater than liabilities by
TREASURY AND AGENCY SECURITIES MARKETS
The second largest sector of the bond market (after the mortgage market) is
the market for U.S. Treasury securities. The smallest sector is the U.S.
government agency securities market. We d
CORPORATE DEBT INSTRUMENTS
Corporate debt instruments are financial obligations of a corporation that
have priority over its common stock and preferred stock in the case of
bankruptcy. In this chapter we discuss the following cor
COLLATERALIZED MORTGAGE OBLIGATIONS AND STRIPPED
In this chapter we discuss two derivative mortgage-backed securities
products: collateralized mortgage obligations and stripped mortgage-backed
ACTIVE BOND PORTFOLIO
This chapter and the two that follow discuss bond portfolio management
strategies. We begin with an overview of the investment management
process and the factors to consider in the sel
RESIDENTIAL MORTGAGE LOANS
When purchasing a home, the major portion of the funds must be borrowed.
The market where these funds are borrowed is called the mortgage market.
This chapter and the two that follow describe residenti
FACTORS AFFECTING BOND YIELDS AND THE TERM
STRUCTURE OF INTEREST RATES
BASE INTEREST RATE
The securities issued by the U.S. Department of the Treasury are the key
interest rates in the U.S. economy as well as in international capital markets.
COMM 367 (02)
Term 2, 2015-2016
Lecture 2 Equity Analysis
Chapters 15 and 16
Part 1 Summary
Objective: To introduce aspects of economic
conditions that affect earnings.
The Global Economy
The Domestic Macroeconomy
Demand and Supply Shocks an
George Tannous Comm 363 Intermediate Corporate Finance November 2009 Assignment 2
1. A ILUPVFXUUHQWDVsets are expected to generate $40,000 per year for the next two years. The firm will be
liquidated at the end of Year 2 but no cash proceeds will b
EX6: Portfolio "P"
Calculate the weight of A in portfolio "P" using the formula on slide 18
The first and second moments of portfolio "P":
$CHGCL C)?" EUSENEEaS
DURATION: 1.5 HOURS
No examination aids other than calculators are ermitted. Use or ossession of
unauthorized materials will automaticall result in the award of a zero rade for this
Section I: 13 marks. Short answers. Please answer questions' In the space provided. Show your work where
necessary in order to receive full credit. -
1) (2 marks) Discuss the difference between a dealer on NASDAQ and a specialist on the NYSE.
BUSI 3502AB Fall 2015
Instructor: Erin Oldford
MIDTERM - SOLUTIONS
November 7, 2015
No. Pages: _
Answer all questions.
Calculators are permitted.
Write in ink or pencil. Either way, handwriting must be clear.
3502AB: Lecture 4
CH5: CAPITAL ALLOCATION TO RISKY ASSETS
CH6: OPTIMAL RISKY PORTFOLIOS
1. To examine portfolio return and risk
2. Capital market line
3. The optimal portfolio
E. Oldford, Fall 2015
1. Portfolio return