MaxMarkCh08QuestionsOnlyWord文档格式.docx
- 文档编号:873808
- 上传时间:2023-04-29
- 格式:DOCX
- 页数:32
- 大小:26.72KB
MaxMarkCh08QuestionsOnlyWord文档格式.docx
《MaxMarkCh08QuestionsOnlyWord文档格式.docx》由会员分享,可在线阅读,更多相关《MaxMarkCh08QuestionsOnlyWord文档格式.docx(32页珍藏版)》请在冰点文库上搜索。
C:
365daysperyear
D:
365daysperyear,exceptforleapyears,whenitis366
Feedback:
TheconventionintheAustralianmarketistoassumethatthereare365daysinayear.Iftheperiodofaninvestmentinaleapyearincludes29February,the29thdayiscountedbuttheyearisstillassumedtohave365days.
MORE:
FinancialInstitutions,InstrumentsandMarkets5/e,p.327.
InExample3theamountwasborrowedforninetydays,whichmustbeconvertedintoafractionofayearinordertoapplyEquation8.1.Itisimportanttonotethatthemarketconventionrelatingtothenumberofdaysintheyearvariesbetweencountries.IntheUnitedKingdom,Australiaandanumberofothercountriestheconventionisthataperannumraterelatestoa365-dayyear.However,intheUnitedStatesandintheeuromarketstheconventionistousea360-dayyear.Inthischapterthe365-dayconventionisused.
Question2:
Someaspectsoffinancialcalculationsarebasedonmarketconventions.ForthepurposeofsimpleinterestcalculationsintheUSandeuromarkets,whatistheconventionconcerningthenumberofdaysinayear?
365daysperyear,exceptforleapyearswhenitis366
Insomemarkets,includingtheUSandtheeuromarkets,itisconventionaltoassumethatthereare360daysinayear.Thissimplifiescalculationsforsecuritieswithtermstomaturityof90,180and270days.
Question3:
Asumof$60000isdepositedinabankaccountthatpaysinterestat5.50percentperannum.Iftheaccountisclosedafter270daysandallfundsarewithdrawn,howmuchwillbepaidtothedepositor?
$62312.50
$2441.10
$62441.10
$62475
UsingEquation8.1theinterestearnedis$600000.055(270/365)=$2441.10sothetotalpaidtothedepositorwillbe$62441.10.
FinancialInstitutions,InstrumentsandMarkets5/e,p.326.
Theamountofinteresttobepaidonadebt,orearnedonadeposit,dependsonthreethings:
∙theamountinvolved,thatis,theprincipal(A)
∙
∙thetimeordurationoftheloan,wherenisthenumberofinterestpaymentperiods
∙therateofinterest(i),whereiisexpressedasadecimal;
thatis,i=5.25percentisexpressedas5.25/100or0.0525.
Thetotaldollaramountofinterestpaidorearned(I)is:
I=A×
(d/365)×
i(Equation8.1)
Question4:
On1January2008,$20000isborrowedataninterestrateof8.75percentperannum.Iftheloanisrepaidinfullon30April2008,whatisthetotalamountthatmustbepaid?
$20583.33
$20575.34
$20580.14
$20590.64
Thetermoftheloanis31+29+31+30=121days.UsingEquation8.1theinterestontheloanis$200000.0875(121/365)=$580.14.Addingthistotheprincipalof$20000givesthetotalof$20580.14.
Oncetheamountofinterestiscalculated,itiseasytodeterminethefinalamountpayable.Theamountwouldsimplybethesumoftheprincipalandtheinterestamount.Alternatively,thefinalamountpayablecanbecalculatedinasingleequation.LetSstandfortheaccumulatedamountpayable,then:
RefertoEquation8.2.
Question5:
Thesumof$250000ispayablein270daystime.Iftheinterestrateis9.5percentperannum,whatisthepresentvalue?
$233372.23
$233385.05
$233855.05
$233585.05
UsingEquation8.3thepresentvalueisequalto$250000/(1+(270/365)0.095)=$233585.05.
FinancialInstitutions,InstrumentsandMarkets5/e,p.328.
Thepresentvaluemaybedefinedasthecurrentvalueofafuturecashflow,orseriesofcashflows,discountedbytherequiredrateofreturn.Thenotionofpresentvalueisclearfromthefollowingtwostatements:
∙thefuturevalueof$100inoneyear,withsimpleinterestof10percentperannum,is$110,so
∙thepresentvalueof$110receivedinoneyear,withsimpleinterestof10percentperannum,is$100.
Thepresentvalueofanamountofmoneycanbethoughtofastheamountneededtobeinvestedtodaytoyieldaparticularvalueinthefuture.Tocalculatethepresentvalueofafutureamount,simplyrearrangeEquation8.2(thefuturevalueequation).Thatis:
S=A[1+(ni)]
whichcanbesolvedforA(theprincipalorpresentvalue)which,ifitwereinvestedtodayfornperiodsatasimplerateofinteresti,wouldaccumulatetoafuturevalueS:
A=S/[1+(ni)]
Thisstatesthatthepresentvalueofafutureamountisthefutureamountdiscounted(ormathematicallydivided)bythesimpleinterestfactor.Examples4to6illustratetheuseofEquation8.3.
Question6:
AnAustraliancompanyissuesa90-daybillofexchangewithafacevalueof$1millionandayieldof7.5percentperannum.Howmuchwillthecompanyreceivewhenthebillisissued?
$1000000.00
$981842.64
$981595.09
$981482.64
ThecompanywillreceivethepresentvalueofthefuturecashflowandusingEquation8.3itisequalto$1000000/(1+(90/365)0.075)=$981842.64.
FinancialInstitutions,InstrumentsandMarkets5/e,p.329.
Example5
Acompanydiscounts(sells)acommercialbillwithafacevalueof$500000,atermtomaturityof180daysandayieldof8.75percentperannum.Howmuchwillthecompanyreceivewhenitsellsthebill?
(CommercialbillsarediscussedinChapter9.Briefly,abillisasecurityissuedbyacompanytoraisefunds.Abillisadiscountsecurity;
thatis,itisissuedwithafacevaluepayableatadateinthefuture,butinordertoraisethefundstodaythecompanysellsthebillforlessthanthefacevalue.Theinvestorwhobuysthebillwillreceivethefacevalueatthematuritydate.)Thepriceofthebillwillbe:
RefertotheequationinExample5.
Question7:
AUScompanyissuesa60-daycommercialpaperwithafacevalueof$1millionandayieldof6.25percentperannum.Whatamountwillthecompanyreceiveattheissuedate?
$994076.39
$989690.72
$993949.62
SincetheissueisintheUSmarketthecalculationisbasedon360daysperyear.Thepresentvalueis$1000000/(1+(60/360)0.0625)=$989690.72.
Question8:
Aninstitutionalinvestorbuys26-weekT-notesatayieldof8.65percentperannum.Whatistheissuepriceper$100offacevalue?
$95.87
$100.00
$104.31
$95.81
Thenoteshaveatermtomaturityof726=182days,sothepresentvalueis$100/(1+(182/365)0.0865)=$95.87.
FinancialInstitutions,InstrumentsandMarkets5/e,p.330.
Example6
Whatpriceper$100offacevaluewouldafundsmanagerbepreparedtopaytopurchase180-dayT-notesifthecurrentyieldontheseinstrumentsis7.35percentperannum?
RefertotheequationinExample6.
Question9:
Asumof$100000isdepositedfor120daysandaccumulatesto$102025.Whatistheyieldonthisinvestment?
$2025
6.075percentperannum
2.025percent
6.16percentperannum
Theinterestearnedis$2025.UsingEquation8.5,theyieldisequalto(365/120)(2025/100000)=0.06159or6.16percentperannum.
FinancialInstitutions,InstrumentsandMarkets5/e,
p.330.
8.1.3Calculationofyields
Intheexamplesgivenabove,theinterestrateoryieldontheinstrumentwasgiven.However,attimestheyieldmaynotbegivenandthenitwillbenecessarytocalculatetheyieldonaninvestment,orthecostofborrowing.Equation8.1canberearrangedtoobtainthesolutionfortheyield.Giventhat:
I=Ani
andsincetheyieldistherelationshipbetweentheprincipalandtheinterestearnedoveracertainperiod,then:
i=365/dI/A(Equation8.5)
Question10:
TwoT-notesareavailable.Thefirstnotematuresin63daysandissellingfor$98.16per$100offacevalue.Thesecondnotematuresin98daysandisselling
- 配套讲稿:
如PPT文件的首页显示word图标,表示该PPT已包含配套word讲稿。双击word图标可打开word文档。
- 特殊限制:
部分文档作品中含有的国旗、国徽等图片,仅作为作品整体效果示例展示,禁止商用。设计者仅对作品中独创性部分享有著作权。
- 关 键 词:
- MaxMarkCh08QuestionsOnly