The rate of return accounts for
4.6 Calculating Returns
What is the rate of return and how does it differ from yield to maturity?
Source:http:/wwwmeasuri gw r h.com/inf at on/
During the deep economic troubles of the 1930s, many countries experiencing
prolonged deflations, including the United States, decided it was better to
abandon gold in favor of much more elastic
4.5 Whats the Yield on That?
What is yield to maturity and for what types of financial instruments is the yield to maturity relatively
easy to calculate?
5.2 Shifts in Supply and Demand for Bonds
What causes the supply and demand for bonds to shift?
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9. Exactly 150 years ago, the U.S. government promised to pay a certain Indian tribe $3,500, or 7
interest until it did so. Somehow, the account was unpaid. How much does the government owe the
for this promise?
10. As part of an insurance s
4.4 Pricing Debt Instruments
What are debt instruments and how are they priced?
4.3 Compounding Periods
If interest compounds other than annually, how does one calculate PV and FV?
For all questions in this set, interest compounds quarterly (four times a year) and there are no
fees, defaults, etc.
1. On your seventieth birthday, you learn that your grandma, bless her soul, deposited $50.00 for you on
day of your birt
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Representative money and credit money are more efficient than commodity money because they are
superior media of exchange and units of account. Their quality is more uniform and easily ascertained,
they have low weight-to-value ratios, they are more divi
4.1 The Interest of Interest
What is interest and why is it important?
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