Technology Project Management
The graduate diploma is awarded upon successful completion of 15 credits. It is oered mainly in English. In accordance with University of Ottawa
Policy, except in language courses and courses in Lettres franaises and English,
Bonds
1. A $1000 bond bearing interest at 6% payable semiannually is due in four years. If
money is worth 7% compounded semi-annually, what is the value of the bond if
purchased today?
2.
Six $1000 bonds with 7.4% coupons payable semi-annually are bought
Deferred annuities
The first payment is made not at the beginning or end of the first period but at a later
date.
0
1
2
(k-1)
k
1
2
3
(n-1)
Payments are deferred by k periods. Number of payments n.
Formula to calculate the present value of deferred annuit
Additional questions on annuities
1. Monthly payments were originally calculated to repay a $20 000 loan at 9%
compounded monthly over a 10-year period. After one year, the debtor took advantage of
an option in the loan contract to increase the loan payme
Annuities due
1. Stephanie intends to contribute $2500 to her RRSP at the beginning of every six
months, starting today. If the RRSP earns 8% compounded semiannually for the
first seven years and 7% compounded semiannually thereafter, what amount will
she
Appendix A: Draft Treasury
Policy Document
Note: This is a sample policy document. Genuine first time buyers of the Handbook of Global
Corporate Treasury can download this template and amend it to suit the objectives of their
Treasury organization. Terms,
Assignment #2
Due date: October 12, 2016
1. (a) Mike invested $3000 at 4.5% compounded semiannually. After 18 months the rate
changed to 4.25% compounded quarterly. What amount will Mike have accumulated 4
years after the initial investment?
(b) If the to
Binomial probability distribution
1. A basketball player has a history of making 80% of the foul shots
taken during games. What is the probability that he will miss three of
the next five foul shots he takes?
2. A machine produces parts, of which 0.5% are
MATHEMATICS FOR MANAGEMENT
CMS2 500
Assignment #1
Due date: September 28, 2016
1. Janie Christopher lent $6000 to a friend for 90 days at 4.5% on November 5 2010. On
December 5, 2010 she sold this promissory note to a third party for $6000.
(a) Calculate
Q30
Total simple interest paid over 10 years
pv
fv
i
n
70%
-1.00
$1.70
5.45%
10
`A|
Q59
Timeline:
Year 10
Year 20
EAR = 10%
PMT = $2,500 / mth
Year 30
EAR = 7%
Spending = $24,000 / mth
Inheritance (lump sum) = $1,500,00
Period of savings
Step 1: Convert E
LO1
Q30
Simple Interest versus Compound Interest
(LO4)Vanscoy Bank pays 7 percent simple
interest on its investment accounts. If Vade
Bank pays interest on its accounts
compounded annually, what rate should the
bank set if it wants to match Vanscoy Bank
1
CFIN 540: Ch. 2 Notes
The Determination of Exchange Rates
- freely floating exchange rate regime: absence of govt intervention
- devaluation: decrease in states par value of pegged currency (value set by govt)
- reevaluation: increase in par value
- flo
CHAPTER 5
INTRODUCTION TO VALUATION: THE TIME VALUE OF MONEY
QUESTIONS AND PROBLEMS
Basic (Questions 115)
1.
Simple Interest versus Compound Interest (LO1) Bank of Vancouver pays 7
percent simple interest on its savings account balances, whereas Bank of C
1.
Award: 0.50 points
Problems? Adjust credit for all students.
How long will it take for $18,000 to triple at 9.19% compounded monthly?
10 years
12 years
14 years
11 years
13 years
2.
Award: 0.50 points
Problems? Adjust credit for all students.
Solve for
CFIN: Start Up Financing Presentation
Jessie Ma
Slide 1: Initial Public Offering
An IPO is the 1st time that the stock of a private company is offered to the public.
Usually, companies choose to go public when funding required to meet demands of your
busi
CFIN: How to Survive and Prosper in the World Financial Crisis
Adam Smith
(Jan 23, 2017)
George Sorrows and Robyn
Crisis began in Thailand
- one of Asian tigers & emerging market (real estate)
- Bakt would have to be devalued
- Japan was one of biggest cu
CFIN 595: Derivatives and Risk Management Tools
Vadim di Pietro
Assignment 2: Solutions
Topic: Eurodollars Futures
1) On the day you do this assignment, go to http:/www.cmegroup.com/trading/interestrates/stir/eurodollar.html. Here you will find Eurodollar
CFIN 595: Derivatives and Risk Management Tools
Vadim di Pietro
Assignment 2
Topic: Eurodollars Futures
1) On the day you do this assignment, go to http:/www.cmegroup.com/trading/interestrates/stir/eurodollar.html. Here you will find Eurodollar futures pr
CFIN 595: Derivatives and Risk Management Tools
Vadim di Pietro
Assignment 3
Topic: Market Microstructure
1) Indicate True or False and give a brief explanation.
a) If you think the price of a stock will likely decrease significantly in the next 5 minutes
CFIN 595: Derivatives and Risk Management Tools
Vadim di Pietro
Assignment 2
Students:
Alexandre Savard
Iman Dorostian, ID: 260595122
Diaa khalifeh, ID: 260620948
Number 1
a)
December 2017 3-Month USD LIBOR fixing expires on December 18th. In order to spe
Suu =
Puu =
uu =
Su =
Pu =
u =
S0 = 1500
Sud =
P0 =
Pud =
0 =
ud =
Sd =
Pd =
d =
Sdd =
Pdd =
dd =
Suuu =
Puuu =
Suud =
Puud =
Sudd =
Pudd =
Sddd =
Pddd =
at t = 2 if uu
Buy or Sell:
Borrow or Lend:
at t = 0
Buy or Sell:
Borrow or Lend:
at t = 1 if u
Buy o
Q1
a)
b)
t0
t1
t2
-101
1.05 S2
1
-1.05
100
100(1.1)^2
0
0 S2 - 100(1.1)^2
F = 100(1.1)^2 = 121
or:
F = FV(S0 PV(Divs) = (101 1.05/1.05)(1.1)2 = 121
i) Short the forward
ii) Buy the stock at t = 0 for $101
iii) Borrow $1 for 1 year (you will pay this loan
CFIN 595: Derivatives and Risk Management Tools
Vadim di Pietro
Assignment 1
Note: Unless specified otherwise, all rates are annual rates with annual compounding
Topic: Forward Prices
1) You are given the following information at t = 0
IBM is trading at
CFIN 595: Derivatives and Risk Management Tools
Vadim di Pietro
Assignment 1: Solutions
Note: Unless specified otherwise, all rates are annual rates with annual compounding
Topic: Forward Prices
1) You are given the following information at t = 0
IBM is