Spring 2015
THE CHINES UNIVERSTY OF HONG ONG K
FINA2210 B/C ters In Theory and Finace
t Asignme No. 5 (for hapterC 8)
Deadlin: 17 April 2015 (5:00pm Sharp)
* hisT is the LAST
t asignme for the course *
1. A company needs to pay a yearly cash-flow stream a
Question 2
a. Using a financial calculator, we find that the price of the zero-coupon bond (with
$1000 face value) is:
For yield to maturity of 8%: $374.84
For yield to maturity of 9%: $333.28
The price of the 6% coupon bond is:
For yield to maturity of 8
Spring 2015
THE CHINESE UNIVERSITY OF HONG KONG
FINA2210 B/C Interest Theory and Finance
Assignment No. 2 (for Chapters 3 and 4)
Deadline: 16 March 2015 (5:00pm Sharp)
1. You are given the following information: iS1 = 2.1%, iF2 = 2.6%, iS3 = 3.1% and iF4
Fall 2014, FINA-2210A Interest Theory and Finance
Chapter 5 Loans and Costs of Borrowing (Amortization and Sinking Fund)
Introduction
This chapter discusses two methods of repaying a loan:
(a) The amortization method: borrower repays the lender via period
Instructions
for Assignment Submission
By
Miss Iris Au
This is 2/F of Cheung Yu Tung Building.
Follow the indicated direction.
Then turn right as indicated.
1.
2.
3.
4.
You will find the assignment inbox and outbox on your right.
Submit your assignment in
Spring 2017
FINA 2210BC Interest Theory and Finance
Mathematical Preliminaries
Arithmetic Sequence: a, a+d, a+2d, a+3d,
n
2
Sum of an arithmetic series: a (a d ) (a 2d ) . [a (n 1)d ] [2a (n 1)d ] .
Geometric Sequence: a, ar, ar2, ar3,
Sum of a geometri
Loans Promotion - HSBC HK
Page 1 of 2
Put your plans in action with an HSBC's Personal Instalment Loan
Sign up for HSBC's Personal Instalment Loan successfully from 21 October 2016 to
14 February 2017 to enjoy the offers below:
Monthly flat rate as low a
Solutions to class exercises - Chapter 14
Given below are comparative balance sheets and an income statement for the Sterling Corporation:
Cash
Sterling Corporation
Balance Sheets Current Year
End.
Beg.
$ 24,300
$ 20,700
Sterling Corporation
Income Statem
Chapter 2 - PART A:
Basic Annuities
January 3, 2015
Chapter 2 (Part A): Basic Annuities
A. Introduction
1. Denition
An annuity is dened as a series of payments made at equal
intervals of time.
An annuity-certain means that payments are certain to be
mad
Chapter 1
Interest Accumulation and
Time Value of Money
January 2, 2015
Chapter 1: Interest Accumulation and Time Value of Money
A. Introduction
1. Basic Concept
Time value of money means that $1 received today is not
equivalent to (usually worth more th
Chapter 2 (Part B)
More General Annuities
January 3, 2015
Chapter 2 (Part B): More General Annuities
A. Payment period dierent from interest period
1. Payment period is longer than interest period
Illustration 1:
Given that j1 = 1% (eective rate of intere
PROBLEM 14.6B
HAMILTON STORES
b.
(1) Current ratio:
Current
($189,000
($189,000
assets:
Cash
Accounts receivable
Inventory
Total current assets
Current liabilities
Current ratio ($435,000 $190,000)
(2) Quick ratio:
Quick
($189,000
assets:
($189,000
Cash
A
Solutions to class exercises - Chapter 11
Question 1
a.
Total dividends paid in third year . $736,000
Dividends on 9% cumulative preference shares:
Dividends ($50 .09 40,000 2 years). $360,000
180,000
Current years dividends ($50 .09 40,000) .
Total paid
Solutions to class exercises - Chapter 10
PART A
1a. April 1, 2000
Cash .
Bonds Payable .
1b. September 30, 2000
Bonds Interest Expense .
Cash .
To record payment of semiannual interest.
($6,000,000 x 9% x 1/2)
1c. December 31, 2000
Bonds Interest Expense
PROBLEM 10.1A
COMPUTER SPECIALISTS
Income Statement
Transaction
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
m.
n.
o.
Revenue NE
NE
NE
I
NE
NE
NE
NE
NE
NE
NE
NE
NE
NE
NE
Expenses =
I
NE
I
NE
NE
I
I
NE
I
I
NE
I
I
NE
NE
Profit
D
NE
D
I
NE
D
D
NE
D
D
NE
D
D
NE
NE
Ass
PROBLEM 11.3B
RAY BEAM LIMITED
a.
RAY BEAM LIMITED
Partial Statement of Financial Position
December 31, 2013
Shareholders' equity
10% noncumulative preference shares, $100 par value, 10,000
shares authorized, issued, and outstanding
$6 noncumulative prefe
Chapter 3
Spot Rates, Forward Rates and
the Term Structure
January 3, 2015
Chapter 3: Spot Rates, Forward Rates and the Term Structure
Learning Objectives
1. Spot rate of interest
2. Forward rate of interest
3. Yield curve
4. Term structure of interest ra
Chapter 5
Loans and Costs of Borrowing
January 3, 2015
Chapter 5: Loans and Costs of Borrowing
Learning Objectives
1. Loan balance: prospective method and retrospective method
2. Amortization schedule
3. Sinking fund
4. Varying installments and varying in
Chapter 4
Rates of Return
February 4, 2015
Chapter 4: Rates of Return
Learning Objectives
1. Internal rate of return (yield rate)
2. One-period rate of return of a fund: time-weighted rate of return and
dollar-weighted (money-weighted) rate of return
3. R
Spring 2015
THE CHINESE UNIVERSITY OF HONG KONG
FINA 2210 B/C Interest Theory and Finance
Assignment No. 1 (for Chapters 1 & 2)
Deadline: 2 March 2015 (5:00pm Sharp)
You MUST submit hardcopy of your assignment to the dropbox located in the 2/F of
Cheng Yu
Spring 2015
THE CHINESE UNIVERSITY OF HONG KONG
FINA2210 B/C Interest Theory and Finance
Assignment No. 4 (for Chapters 6 and 7)
Deadline: 10 April 2015 (5:00pm Sharp)
1. An investor buys two 20-year bonds, each having semiannual coupons and each maturing
Spring 2015
THE CHINESE UNIVERSITY OF HONG KONG
FINA2210 B/C Interest Theory and Finance
Assignment No. 3 (for Chapter 5)
Deadline: 25 March 2015 (5:00pm Sharp)
1. A loan of $12,000 is being repaid with payments of $1,500 at the end of each year for 10 ye
Semester II 2014/15
THE CHINESE UNIVERSITY OF HONG KONG
FINA 2210B/C Interest Theory and Finance
Instructor:
Professor Wai-Sum Chan (Email: [email protected])
Tutor: Miss Iris Au (Email: [email protected])
Course Website: https:/elearn.cuhk.edu.hk/w