Price, Returns, Yields

Coupon rate > Required yield, Price > Par
Coupon rate < Required yield, Price < Par
Coupon rate = Required yield, Price = Par
Price Quotes: The prices are quoted as a percent of par (with fractions in 32nds)
EX: 964 means 96 and
Finance 320
Fall 2016
(100 points)
Professor Sapp
Assignment #1
Due: Oct. 4, 2016
Historical Return and Risk
Objective: The objective of this assignment is to learn how to obtain basic statistical
measures of portfolio performance using historical data. T
Pricing, Yields, and Return Measures
Chapter 2&3
FIN 327
Prof. Hood
Review
If you dont remember all the following then
you should remind yourself:
 Present value
 Future value
 Present value of an annuity
 Future value of an annuity
 Converting rate
Formula Sheet for Exam 1
Fin 327
PV of OrdinaryAnnuity =
A
1
1
r (1 + r )n
C
C
C+M
P =
+
+
L
+
(1 + y )1 (1 + y )2
(1 + y )n
C
1
M
P = 1
+
y (1 + y )n (1 + y )n
FV of OrdinaryAnnuity =
Yd =
n
P=
t =1
[
]
A
(1 + r )n 1
r
D 360
F t
CFt
(1 + y )t
PSel
RiskFree Term Structure
FIN 327
Prof. Hood
Yield Curve vs. Spot Curve
We do not want to use YTM for a curve why?
What we want to know is what the discount rate is
for a riskfree cash flow received at a particular date.
We need a zerocoupon bond at e
Albert Rosas
FS HN 342
Nutrition Case Study Report
Malnutrition in pregnant women is a widespread problem that still remains
prevalent in this day and age. Malnourished pregnant women face different
obstacles in relation to their geographical location, so
Study Guide for Section 3
1. What are the three main forms of land degradation, and the percentage of their
contribution to global land degradation? Explain.
Erosion: 83% Soil removed by wind and water. Agricultural causes are from plowing
and bare field
FINANCE 310
Corporate Finance
Fall 2016
Rs Nappinnai (Nappi)
Gerdin # 3233
Office: 2948796
Email: [email protected]
Office Hours: Mondays 1:00 PM to 2:00PM
and by appointment.
PRESCRIBED: Corporate Finance: Brigham Klein Case Book. (Please wait for me t