returned intact. No part may be removed from the examination room. Family name: …………………………………..…. Other names: ……………………………………… Student ID: …………………………..…………….. AFIN 253 Financial Management MID-SEMESTER TEST: TUESDAY 10th APRIL 2012 Time allowed: 1 hour 30 minutes plus 10 minutes reading time. Instructions 1. Writing is not permitted in reading time. All pens‚ pencils and highlighters must be on your desk. 2. Part A - There are 15 multiple choice questions worth 1 mark each. Select the ’one best’
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133 Mom: 24 152 So the ratio for Allie is 21 : 133 By dividing both values by 7 we get 21/7 : 133/7 = 3 : 19 And the ratio for Mom is 24 : 152 By dividing both values by 8 we get 24/8 : 152/8 = 3 : 19 The simplified "foot-to-height" ratios are now: Allie: 3 19 Mom: 3 19 "Oh!" she said‚ "the Ratios are the same". "So my foot is only as big as it should be for my height‚ and is not really too big." The following assignment illustrates the process a company initiates in order to implement
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Week 3 Time Value of Money and Valuing Bonds Chapter 6 55. Amortization with Equal Payments Prepare an amortization schedule for a five-year loan of $36‚000. The interest rate is 9 percent per year‚ and the loan calls for equal annual payments. How much interest is paid in the third year? Answer: $2‚108.52 56. Amortization with Equal Principal Payments Rework Problem 55 assuming that the loan agreement calls for a principal reduction of $7‚200 every year instead of equal annual payments. Answer:
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Assignment no. 1 Fixed Income Securities and Markets Question A.1 Given the following bond: |starting date |30/09/2011 | |maturity date |30/09/2014 | |coupon rate |4.00% | |coupon frequency |annual | |day count |act/act | |nominal value |100 | a) Calculate the price of the security on
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CHAPTER 4 BONDS ANND THEIR VALUATION Bond value--semiannual payment 1. You intend to purchase a 10-year‚ $1‚000 face value bond that pays interest of $60 every 6 months. If your nominal annual required rate of return is 10 percent with semiannual compounding‚ how much should you be willing to pay for this bond? N = 20 I/Y = 5 PV = -1124.62 PMT = 60 FV = 1000 Bond value--semiannual payment 2. Assume that you wish to purchase a 20-year bond that has a maturity value of $1‚000 and makes semiannual
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Bond Interest and Principal Payments A bond is a type of long-term debt that is issued by a corporation and is purchased by an investor for cash. A formal contract is issued by the corporation that states the legal terms of the bond. The advantages of issuing a bond from a corporation is that the ownership interest of the bondholders will not be diluted and those bonds are available at lower costs than the common stocks available. After a bond is issued by the corporation‚ the bondholder is promised
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HOMEWORK ASSIGNMENT 1. Callaghan Motors’ bonds have 10 years remaining to maturity. Interest is paid annually‚ they have a $1‚000 par value‚ the coupon interest rate is 8%‚ and the yield to maturity is 9%. What is the bond’s current market price? PV factor of sum = (1+i)^-n = (1+9%)^-10 =1.09^-10 = 0.4224 PV factor of annuity = 1 - (1+i)^-n / i = 1 - (1+9%)^-10 / 9% = 1 - 0.4224 / 9% = 0.5775 / 9% = 6.417 = PV factor of Sum * Par Value + PV factor of annuity * coupon payment = 0.4224 * 1‚000
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Ashworth‚ and today we’ll be discussing the analytics and data monitors that we have available within fixed income on the Bloomberg terminal. The first tool that we want to use to look at news‚ news for fixed income. So what we’ll do is we’ll navigate down to the bottom of the menu‚ and we’ll click on 14 NBOND for bond news. Clicking that‚ it’ll load a very familiar page for you. This is the news categories. And you’ll notice on the top left in the toolbar it says bonds. So now we have our top
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Convertible Bonds A convertible bond is a bond that can be converted into shares of common stock. Therefore‚ these are two sources of value for this security: the value of the bond components‚ and the value from possibly converting the security into shares of common stock. Features of a Convertible Bond The basic features of a convertible bond can be illustrated by a hypothetical example. On November 1‚ 2003 ("today")‚ Apple‚ had $400 million in 8.80 percent (annual payments) convertible bonds due in
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-PRINCESS DELOS SANTOS -JOYCE DOMINGO -ARVYNNE FAJARDO Chapter 8: Corporate Stocks 3 Classification of Capital Requirements 1. short term 2. intermediate-term 3. long term Stock Financing-when shares of stock are sold to raise funds for the long term financing requirements of the firm. Capital Stock‚ Dividends‚ and Retained Earnings CAPITAL STOCK- interest of the owners of a corporation. -Issued Stock- portion of the authorized stock has been issued and sold. - Unissued Stock- those
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