Saint Mary's University Sobey School of Business Assignment #3 Total 65 marks Due March 16, 2012 at 12 noon Question 1 (3 marks) Why is it that bonds do not typically sell at par value? (3 marks) Question 2 (9 marks) The rate of return you earn on a bond
Saint Mary's University Sobey School of Business Assignment #3 Total 65 marks Due March 16, 2012 at 12 noon Question 1 (3 marks) Why is it that bonds do not typically sell at par value? (3 marks) A bond will only sell at the par value if the market rate o
Question 1 (4 marks) You are in the process of purchasing a new home. The mortgage broker has offered you a 25 year amortization and a choice of a 2 year, 3 year or 5 year term. What does this mean?
Question 2 (3 marks) You and your friend are both gradua
FIN2360 Time Value of Money SOLUTION TO PRACTICE PROBLEMS Consider the following cash flows and interest rates: Period 1 2 3 4 a) Interest Rate 5% 6% 7% 7% Cash Flow 5,000 1,000 1,000 1,000
What is the present value of each of the cash flows if the cas
Example 10 Two investment funds use differing investment strategies have provided the following expectations for the next year. One of the funds is an equity fund and the second fund is a bond fund.
Probability State of of State of Nature Nature Boom 0.25
FINA2360 Winter 2012 Assignment #4 Assignment is out of 75 marks Due Friday March 30, 2012 at 12 noon.
Discussion Questions (15marks)
a) According to the text, the NPV rule states that "An investment should be accepted if the NPV is positive and rejected
FINA2360 Winter 2012 Assignment #1 Total 43 marks Due Friday January 27, 2012 at 12 noon.
Question 1 (8 marks) Which of the following actions are not an agency costs and why? I. foregoing an investment opportunity which would add to the market value of th
FIN 2360.1 Introductory Business Finance DECLARATION COVER SHEET FOR ASSIGNMENTS NAME: STUDENT NUMBER: SECTION: PROFESSOR: ASSIGNMENT NUMBER:
"It is the student's responsibility to have a reasonable level of maturity and selfdiscipline. . There may be ti
CCA Calculations (CCA rate 30%) Year 1 2 3 4 5
Beginning UCC $0.00 $136,000.00 $95,200.00 $66,640.00 $46,648.00
Net Additions CCA - Half year $160,000.00 $24,000.00 $0.00 $0.00 $0.00 $0.00
CCA - Full year $0.00 $40,800.00 $28,560.00 $19,992.00 $13,994.40