FNCE 2P91 Lecture Notes - Booster Juice, Annuity, Dividend Yield
28 Apr 2013
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Quiz two bonds and stocks chapters 7 and 8. Chapter 9 not on the midterm. Instead of spending . 29 per week on booster juice, an aspiring 2p91 student invests that money at an. Ear of 8% every week for 4 years from age 18 to 22. Then he/she lets the savings compound until retirement at age 65. Let the fv22 grow at the ear of 6% for 43 years. Find the n value of an annuity formula. You owe and have agreed to make payments per month to lender. Price of any bond is going to be equal to the present value of cash flows. We had a bond with 12% coupon rate and 30 years to maturity with a ytm of 12%. Longer bonds will have more price movement that shorter bonds for same ytm impact. Compare above 30 year bond to 2 year bond.
