MACQUARIE UNIVERSITY
Faculty of Business and Economics
ACST201: Financial Techniques, Instruments and Markets
WORKSHOP PROBLEMS (Week 2)
PRICES & YIELDS: SHORT TERM FINANCIAL INSTRUMENTS
1. A company borrows funds for 15 days at 8% pa to buy a 180-day ban
Group Task 2: FINDING THE
HOLDING PERIOD YIELD ON A
BOND INVESTMENT
The CFO of Best Company was extremely impressed by your teams performance in providing
information about the costs of issuing bank bills to fund Best Companys short-term operations.
As a
Total dollar return = Total accumulated valuePurchase price
Answer would be lowerthere is less time for interest to be
earned, and for the interest earned to be compounded. In general,
the interest earned on reinvested coupons will be a more
important com
Students names and ID's should show here
Finding the holding period yield on a six year treasury bond investment
1. This spreadsheet calculates the holding period yield on a 6 year investment in a Treasury bond. The user of this spreadsheet can enter the
ACST201 Financial Techniques, Instruments and Markets
Question 1
Take-home quiz 1
S2 2013
[4 marks]
a. [2 marks] This year the British queen, Elizabeth II, celebrated over
60 years as monarch. She was crowned queen on 2 June 1953.
If your mother invested
Group Task 3: CASH FLOW
PROJECTION MODEL FOR A ONEYEAR TERM INSURANCE POLICY
Construct a spreadsheet model for projecting the expected cash flows for a group of 10 000 identical
one-year term life insurance policies. This policy pays an agreed sum insured
ACST201 Financial Techniques, Instruments and Markets
Question 1
Take-home quiz 2
S2 2013
[6 marks]
A 6% Treasury bond, which is six years from maturity, is purchased at a
yield of j2 = 7% p.a. The bond is held to maturity, and all coupons are
reinvested
CASH FLOW PROJECTION MODEL
FOR A ONE-YEAR TERM INSURANCE POLICY
This spreadsheet is designed to project the expected cash flow for a group of 10,000 identical one-year term life insurance policies. The policy will
payout at the end of the year, if the pol
Sample Solutions to the Selection of questions from 2011 Final Exam paper.
Question 1
(a) Ben buys a 180-day $100,000 bank bill, 30 days after issue, for a price of
$98,140.70 (the purchase yield is 4.61%). After holding the bill for 30 days
Ben sells it
MACQUARIE UNIVERSITY
Faculty of Business and Economics
ACST201: Financial Techniques, Instruments and Markets
WORKSHOP PROBLEMS (Week 13)
1. A 150-day promissory note, with a face value of $100,000, is sold for
$97,164.91. Find the simple interest yield p
MACQUARIE UNIVERSITY
Faculty of Business and Economics
ACST201: FINANCIAL TECHNIQUES, INSTRUMENTS AND MARKETS
TUTORIAL 11: SAMPLE SOLUTIONS
Question 1
(a) Which would be more expensive today: a one month American call option on stock A with a
strike price
MACQUARIE UNIVERSITY
Faculty of Business and Economics
ACST201: FINANCIAL TECHNIQUES, INSTRUMENTS AND MARKETS
TUTORIAL 2 (Held in Week 3)
Questions to try before the tutorial
1. Calculate the maturity value, and then the annualised (simple interest) yield
MACQUARIE UNIVERSITY
Faculty of Business and Economics
ACST201: FINANCIAL TECHNIQUES, INSTRUMENTS AND MARKETS
TUTORIAL 3 (held in Week 4)BOND PRICING
Questions to try before the tutorial
1. Find the price, to yield 6% p.a. net, of a 10-year 8% p.a. Treasu
MACQUARIE UNIVERSITY
Faculty of Business and Economics
ACST201: FINANCIAL TECHNIQUES, INSTRUMENTS AND MARKETS
TUTORIAL 4 (held in Week 5)TRCY
Question 1
A 6% 20-year Treasury bond is bought at a yield of 8.5% (compounded half-yearly) for a price of
$76.15
MACQUARIE UNIVERSITY
Faculty of Business and Economics
ACST201: FINANCIAL TECHNIQUES, INSTRUMENTS AND MARKETS
TUTORIAL 1 (held in Week 2)SIMPLE INTEREST AND SIMPLE DISCOUNT
Questions to try before the tutorial
1. Find the price, at 6.4% p.a. (simple inter
MACQUARIE UNIVERSITY
Faculty of Business and Economics
ACST201: Financial Modelling
WORKSHOP PROBLEMS (Week 03)
PRICES & YIELDS: SHORT TERM FINANCIAL INSTRUMENTS
1. A company borrows funds for 15 days at 8% pa to buy a 180-day bank bill
at a yield of 14.1
OLQ2
Face value
Number of days
Purchase date
Purchase price
Purchase yield rate
Description
a.
100000
180
1/15/2017
97500
5.20%
Use the simple interest formula to calculate the purchase yield rate.
Input value
Output value
OLQ2
Face value
Number of days
P
OLQ1
Face value
Coupon rate
Coupon per half year
Bond price
Number of half years till maturity
100
5.50%
2.75
92.60
27
Yield rate j2
Bond price
6.32%
92.60
Input value
Output value
a.
Input the related input values, e.g., face val
Set a dummy variable for
ACST201 Week 05
Financial Techniques,
Instruments & Markets
Bonds:
Effects of Fees and charges
Reinvestment risk and
realised yield (TRCY)
(c) Macquarie University 2016
1
I found applying knowledge to
problems not previously
encountered was of course
pai
Finance 1B
AFIN102
Lecture 10
Capital raising and payout policy
Keith Woodward and Fan Yu
Revised: 21.2.16
Company Tax
The company tax rate is a flat 30% in Australia. This means
that the marginal tax rate is the same as the average tax rate.
In some coun
Finance 1B
AFIN102
Lecture 9
Market Efficiency and
Regulatory Bodies
Revised: 21.2.16
The Efficient Markets Hypothesis (EMH)
The EMH implies that stocks are fairly priced. They are not
over-priced or under-priced.
If markets are efficient (so the EMH ho
ACST201 Financial Modelling
Week 02 workshop material
S1 2016
Week 02 Workshop Problems
1. Using j1 = 7%, find the future value at 1 June 2013 of an annuity with
annual payments of $5 000 payable from 1 June 2003 to 1 June 2013
inclusive. Answer this ques
MACQUARIE UNIVERSITY
Faculty of Business and Economics
ACST201: FINANCIAL MODELLING
PRACTICAL 1 (held in Week 02)SIMPLE INTEREST AND SIMPLE DISCOUNT
Questions to try before the tutorial
1. Find the price, at 6.4% p.a. (simple interest), of a $100 000 bank
Semester 2, 2012
ECON204
Macroeconomic Analysis
Tutorial 4, Week 6
Questions
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eH w
er as
o.
co
m
1. Consider the following model of the economy:
Wages are determined by the following equation W = Pe (2.5 - 10u).
Price