Lectures week 6
3.3 Annuities Due
Payments of R at the beginning of each period for n
periods.
PV
R n| R Rv Rv 2 Rv n1
n
1
v
R
1v
n
1
v
R
d
AV
Rs n| R1 i n R1 i n1 R1 i
R1 i 1 i n1 1 i n2 1 i 1
R1 is n|
1 i n 1
R1 i
i
1 i n 1
R
d
a 5|
6| 1 a 5|
n1| 1
Lectures week 5
Approximate Dollar-Weighted Yield over 1 year
Let A opening balance at t 0
Let B closing balance at t 1
Let C t k net contribution at time t k , where
0 t1 t2 tn 1
I
i
n
k1 C tk 1t k
A
Approximate Dollar-Weighted Yield over 2 years
Let
Actsc 231 - Problem Set 7
This problem set is composed mainly of recommended problems from the course textbook.
For the textbook problems, at the beginning of the question, a reference will be made to the
exercise from which it was taken.
1. Find the pres
Actsc 231 - Problem Set 2
Note that the questions with an Exercise reference at the beginning have been obtained
from the course textbook. We still need to complete the section on nominal rates. However,
given your knowledge so far of these nominal rates,
Actsc 231 - Problem Set 4.5
This problem set is composed of recommended problems from the course textbook.
1. (Exercise 2.1 Part A Question 15) Mrs. Singh borrows $3000, due with interest at i(12) =
9% in 2 years. The lender agrees to let Mrs. Singh repay
Actsc 231 - Problem Set 3
Note that the questions with an Exercise reference at the beginning have been obtained
from the course textbook.
1. If we invest $1000 now into an account, what is the accumulated value after 5 years if the
account accumulates at
Actsc 231 - Problem Set 5.5
This problem set is composed of recommended problems from the course textbook.
1. (Exercise 3.4 Part A Question 12) On Mr. Pimentels 55th birthday, the Pimentels decide
to sell their house and move into an apartment. They reali
Actsc 231 - Problem Set 4
This week, most of the following questions are challenging questions. For less difcult
questions, please refer to the course textbook.
1. A new ination-linked product provides cash-ows at the beginning of each year for
30 years.
Actsc 231 - Problem Set 8
This problem set is composed mainly of recommended problems from the course textbook.
For the textbook problems, at the beginning of the question, a reference will be made to the
exercise from which it was taken.
1. Assume i(1) =
Actsc 231 - Problem Set 1 Solutions
Note that the questions with an Exercise reference at the beginning have been obtained
from the course textbook.
1. (Exercise 1.2, Question 3) You are given A(t) = 100(1.05)t .
(a) Calculate I5 and i5 .
(b) Calculate I2
ACTSC 371 Corporate Finance 1
Assignment 4 Due Date March 21st, 2013 at 5 pm
Please submit your assignment in the DROP BOXES outside the math tutorial centre.
Question 1: [9 marks] The Math C&D is considering selling pizzas, and MathSoc has asked for your
Blue
Name: ID:
(Surname) (First Name)
1. To purchase a house for $280,000, a couple makes a 15% down payment and finances the rest with a
mortgage at in) = 6.40% over 20 years. Calculate the required weekly mortgage payment and the total
amount of interes
Property and Casualty Insurance Fall 2013
ACTSC 463/863
1
Property and Casualty Insurance
ACTSC 463/863
Fall 2013
Instructor
E-Mail
Office Hours
Chris Van Kooten, FCAS,
FCIA
vankootenc@gmail.com
By appointment only
Course Description
This course is focuse
ACTSC 446/846 - Problem Set 1
For the following questions, assume that you can buy/sell risk-free bonds (i.e. borrow/lend
at the risk-free rate).
1. Let F1 and F2 be the forward prices of the same underlying stock with time to maturity T1
and T2 respectiv
ACTSC 446/846 - Problem Set 1
For the following questions, assume that you can buy/sell risk-free bonds (i.e. borrow/lend
at the risk-free rate).
1. Let F1 and F2 be the forward prices of the same underlying stock with time to maturity T1
and T2 respectiv
The swap bank makes 0.25% Swap Bank
10.5% LIBOR 0.25%
10.375%
LIBOR 0.125%
Bank A A saves 0.5%
Fixed rate Floating rate COMPANY 11.75% LIBOR + .5% B
Company
B
BANK A 10% LIBOR
B saves 0.5%
What is happening here? We see: 1) The swap bank makes 0.25% 2) Th
p0 + S0 = c0 + E/(1+ r)T
put
Stock
call
Strike
rf rate
Exp
Trades
Long call
Investing PV(E)
0.50
20.00
5.36
15.00
5%
0.5 years
Short put
Short stock
Net
LS
20.50
RS
20.00
European
Non-dividend paying stock
Long PV(E)=investing
Shorting= borrowing; shortin