Economics 372/572
Intermediate Finance
Fall 2015
Problem Set 2: Bond Markets: SOLUTIONS
Part 1
You have just purchased $5 million par amount of the 5yr and 30yr US Treasury bonds shown below, at the
prices shown. (Assume all bonds are semi-annual compound
MIDTERM EXAM SOLUTIONS
Econ 372/572
Fall 2015
Question 1
Thompson Foods
Mid Cap Food Comparable Company Output as of 09/19/15
Share Price Market Enterprise
Share Price
% of
Value
Value
(US$)
52 week high (US$mm) (US$mm)
38.6
96.8%
14,579
17,113
40.0
95.1%
Econ 372/572
MIDTERM EXAM SOLUTIONS
Fall 2016
Question 1
Assume that today is January 1, 2016. You have a liability for paying college fees for your children of
$20,000 at the end of each of the next 2 years (Dec 2016 and Dec 2017). You can invest your mo
PS 1: Bonds
SOLUTIONS
Econ 372/572
Fall 2015
1. You have been told that the yield on a particular 10yr bond is 6.5%. This bond pays an 8.5% coupon with
semi-annual compounding (i.e., it is a US Treasury bond). What will its price be?
P
= 4.25/0.0325 [1 -
Memo of Impala Case Study
Pu Wang, Wen Ou, Yicheng Zhao
Memo of Impala Case Study
Group members: Pu Wang, Wen Ou, Yicheng Zhao
We recommend GM to proceed with the launch of the next generation Impala based on the
following reasons. Originally, we get a 26
General Motors Impala Case Study
Fall 2015
Instructions
Please complete the case study below, which involves completing an Excel model (using the template
provided) and preparing a written memo.
The case below contains data and information needed to compl
Econ 168
Midterm Exam - Solutions
Spring 2010
Question 1
(i) You have been told that the yield on 10yr bonds is 6.2%. A given 10yr bond pays a 7% coupon
with semi-annual compounding. What will its price be?
(a) $54.82
(b) $69.53
(c) $103.39
(d) $105.90
P
Problem Set 4 Econ 372
1a. For a high positive correlation close to 1, the efficient frontier is close to linear and does not
give benefit from diversification. For a lower correlation (closer to -1), the efficient frontier
becomes increasingly curved up
Econ 372/572
Intermediate Finance
Fall 2015
M/W 10:05 11:20, Soc Sci 139
Emma Rasiel, [email protected]
Office Hours: Wednesdays, 1:30 2:30 or by appointment.
SYLLABUS
COURSE SYNOPSIS
The goal of this course is to provide a framework for understanding the key
Economics 372/572
Intermediate Finance
Fall 2015
Problem Set 3: Project Valuation
Question 1
For this question, you will need to download ps3.xlsx from Sakai. This is a similar NPV to the one we did in
class, but some of the assumptions have been changed,
Econ 372/572
MIDTERM EXAM SOLUTIONS
Spring 2013
Question 1
HighCoup Inc. has issued a prospectus for their forthcoming bond issue. The HighCoup bonds
have a 15% coupon (with semi-annual compounding) and mature in 10 years. HighCoup argues
that their bonds
Econ 172
PRACTICE Midterm SOLUTIONS
Spring 2012
Practice Midterm
Question 1
(a) You have been told that the yield on 10yr bonds is 6.2%. A given 10yr bond pays
a 7% coupon with semi-annual compounding. What will its price be?
P = 3.5/0.031 [1 - 1.031^(-20
Econ 172
MIDTERM EXAM SOLUTIONS
Spring 2011
Instructions:
1. Some of the questions on this exam are multiple choice. Each multiple choice
question is worth the same number of points. Each multiple choice question has
only one unambiguously correct answer.
Performance Management &
Measurement
1
Portfolio Management
Portfolio management: tradeoff of return vs risk
Hedge fund: high risk return profile?
Pension fund: contributions and payouts
Mutual fund: different funds have different profiles
Individual
Econ 372/572
MIDTERM EXAM SOLUTIONS
Fall 2015
Question 1
Thompson Foods
Mid Cap Food Comparable Company Output as of 09/19/15
Share Price Market Enterprise
Share Price
% of
Value
Value
(US$)
52 week high (US$mm) (US$mm)
38.6
96.8%
14,579
17,113
40.0
95.1%
Problem Set 7
Econ 372
Jonathan Rogers
Section 1:
1.2% is the lower bound because this is the RoR that the portfolio would have if all of the funds
were invested in short term bonds, which have the lowest mean return. 7.10% is the upper
bound because this
Economics 172
Intermediate Finance
Spring 2012
Problem Set 6: CAPM: SOLUTIONS
For this problem set, use the spreadsheet ps6_CAPM.xls.
Question 1. See the Q1 worksheet in the spreadsheet, which gives you weekly closing levels on
the S&P500 index, as well a
Econ 372/572
Intermediate Finance
SAMPLE Final Exam with SOLUTIONS
Fall 2013
1. Bonds
You have just purchased $5 million par amount of the 5yr and 30yr US Treasury bonds shown below, at
the prices shown. (Assume all bonds are semi-annual compounding.)
Par
Economics 372/572
Intermediate Finance
Spring 2014
Problem Set 7: FUTURES & OPTIONS: SOLUTIONS
Question 1
A Swiss company purchased machine tools from a US engineering firm. The delivery date is in
June, and the purchase price of the machine tools is SFR
Duke University
BlackRock Asset Allocation Project
Guidelines
Fall 2015
Asset Allocation Project: Guidelines
Introduction
Imagine that you are a portfolio manager for an asset management firm that offers a range of
investment funds for many different type
Econ 372/572
CAPM & Performance Measurement
SOLUTIONS
Spring 2014
1. What is the beta of a portfolio with E[rp] = 18%, if rf = 6% and E[rm] = 14%? [5 marks]
CAPM: E[rp] = rf + p (E[rm] - rf )
18 = 6 + p (14 - 6 ) => p = 12/8 = 1.5
2. Assume that we are in
Economics 372/572
Intermediate Finance
Spring 2014
Problem Set 3: Bond & Equity Markets SOLUTIONS
Question 1
Part A
Replicate in a spreadsheet the sample DCF calculation from class (the Ice Cream company), using the
PS3_Q1.xls spreadsheet provided. [20 ma
Economics 372/572
Intermediate Finance
Fall 2015
Problem Set 3: Project Valuation
Question 1
For this question, you will need to download ps3.xlsx from Sakai. This is a similar NPV to the one we did in
class, but some of the assumptions have been changed,
September 21, 2015
Economics 372/572
Problem Set 3
Yicheng Zhao
MA EAS
Question 1
(a) What is the Projects NPV?
NPV=-24.23 thousand (-24226.08)
(Complement: If Installation Cost is unnecessary to subtract from NPV, then NPV=10.77
thousand (10773.92)
(b) I
Economics 372/572
Intermediate Finance
Fall 2015
Problem Set 8: FUTURES & OPTIONS
Question 1
A Swiss company purchased machine tools from a US engineering firm. The delivery date is in
June, and the purchase price of the machine tools is SFR 5million. The
Economics 372/572
Intermediate Finance
Fall 2015
Problem Set 4: Comparables - SOLUTIONS
Question 1
Todays date is January 2, 2015. You have carried out both a comparable companies and a DCF analysis to
evaluate a niche clothing company for a potential acq
Economics 172
Intermediate Finance
Spring 2012
Problem Set 1: Mortgages SOLUTIONS
1. Exactly one year ago you borrowed $250,000 to finance the purchase of an investment property via a tenyear 6% mortgage. Interest compounds monthly, and you make monthly p
Economics 372/572
Intermediate Finance
Spring 2016
Problem Set 4: Diversification and CAPM - SOLUTIONS
Question 1
In ps4.xlsx, you are given a universe of possible asset indices: international equities,
commodities, real estate, investment-grade corporate
Economics 372/572
Intermediate Finance
Spring 2016
Problem Set 7: FUTURES & OPTIONS: SOLUTIONS
Question 1
A Swiss company purchased machine tools from a US engineering firm. The delivery date is in
June, and the purchase price of the machine tools is SFR
Econ 372/572
CAPM & Performance Measurement
SOLUTIONS
Spring 2016
Q1. See.ps5_CAPM_performance.xls, and look at the BETAS worksheet, which gives you weekly
closing levels on the S&P500 index, as well as weekly closing prices on three stocks: a
pharmaceuti
Financial Markets and Investments
Problem Set 4: Optimal Risky Portfolios SOLUTIONS
Econ 157
ANNUALIZED STANDARD DEVIATION, AVERAGE RETURN AND CORRELATION COEFFICIENTS
Intl Equity
Commodities
Inv Grade credit
7-10yr UST
Inflation-sensitive
Real Estate
1-3