Family Name
ID. No.
Given Name
U of Windsor DEPARTMENT OF MATHEMATICS AND STATISTICS
Theory of Interest 62-392 Test 1
M. Hlynka
Wednesday, February 11, 2015. Time allowed: 75 minutes.
Directions: You
Family Name
ID. No.
Given Name
U of Windsor DEPARTMENT OF MATHEMATICS AND STATISTICS
Theory of Interest 62-392 Test 1
M. Hlynka
Tuesday, February 11, 2014. Time allowed: 75 minutes.
Directions: You mu
CHAPTER 7: CASH FLOW DURATION AND IMMUNIZATION
page 361 (6th ed.)
The market value (or price) of a bond generally changes over time, as does the
yield rate.
7.1 BOND DURATION AND CASH FLOW DURATION:
T
CHAPTER 9: ADDITIONAL TOPICS (p. 439 (6th)
We cover sections 9.1, 9.2, 9.3.1 and 8.1.1,8.1.2 (6th ed)
9.1 (p.439) STOCK VALUATION:
The DIVIDEND DISCOUNT MODEL FOR VALUING STOCKS says that the
value of
CHAPTER 6: THE TERM STRUCTURE OF INTEREST RATES
p. 315 (6th. ed.)
Denition: Term structure is the relationship between the time to maturity
and the yield to maturity of zero coupon bonds.
6.1 SPOT RAT
CHAPTER 5: MEASURING RATE OF RETURN OF AN INVESTMENT
(p.277, 6h edition Broverman)
An investor may have an account where investments earn interest. At various
times, amounts are added to the account a
Chapter 4 Class Notes for Brovermans
Mathematics for Investment and Credit, 6th ed.
CHAPTER 4: BOND VALUATION (p. 237)
When a corporation or government wants to borrow money, it issues a bond (or
debe
Class Notes for Brovermans Mathematics for
Investment and Credit, 6th ed.
CHAPTER 2: VALUATION OF ANNUITIES (p. 77, 6th)
DEFINITION: An annuity is a series of payments over time. An annuity-certain
is
Chapter 3 Class Notes for Brovermans
Mathematics for Investment and Credit, 6th ed.
CHAPTER 3: LOAN REPAYMENT AND AMORTIZATION
Section 3.1.
The amortization method is a loan repayment scheme and decom
Class Notes for Brovermans Mathematics for
Investment and Credit, 6th ed.
CHAPTER 1
Notes prepared by M. Hlynka, Department of Mathematics & Statistics,
University of Windsor, Windsor, Ontario, Canada