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  • Assignment FM 02 & 03 - 200109 Prentice Hall

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    irwanarfandi
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    This document contains solutions to problems from a course on financial management. It includes calculations related to bond valuation, yield, and rate of return. The problems involve computing present value, current yield, and nominal rate of return for different bonds and investments given information like face value, interest rate, payment amounts, and time periods.

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    Assignment FM 02 & 03 - 200109 Prentice Hall

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    This document contains solutions to problems from a course on financial management. It includes calculations related to bond valuation, yield, and rate of return. The problems involve computing present value, current yield, and nominal rate of return for different bonds and investments given information like face value, interest rate, payment amounts, and time periods.

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    Attribution Non-Commercial (BY-NC)
    Download as DOC or read online from Scribd
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    73 views2 pages

    Assignment FM 02 & 03 - 200109 Prentice Hall

    Uploaded by

    irwanarfandi
    This document contains solutions to problems from a course on financial management. It includes calculations related to bond valuation, yield, and rate of return. The problems involve computing present value, current yield, and nominal rate of return for different bonds and investments given information like face value, interest rate, payment amounts, and time periods.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC or read online from Scribd
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    of 2

    Name : Irwan Arfandi Bachtiar

    Reg. No. : 0850035


    Student No. : 08/277521/PEK/12851
    Lecture : Prof. Eduardus Tandelilin, Ph.D
    Course : Financial Management – International
    Class
    Masters of Management – Gadjah Mada University

    Problem 6-4

    Health Food,
    n = 7 years
    Face Value = $1000
    Interest annually, 9 percent
    PMT = CR x FV
    =9% x 1000
    =$90
    PV = With financial calculator
    = 1052.06

    Current Yield = PMT/PV = 90/1052,06 = 0,0855 = 8.55%

    Problem 6-6

    Bond S Bond L
    FV = $1000 FV = $1000
    n =1 n = 15
    PMT = 100 PMT = 100

    PV if The Interest :

    i Bond S Bond L
    5% 1047.62 1518.98
    8% 1018.52 1171.19
    12% 982.14 863.78

    Problem 7-4
    D = $5
    P = $40
    Rate of Return = Do/Po
    = 5/60
    = 8.33%

    Problem 7-8
    Face value = 100
    D = 8% from face value = $8
    Current market price (Po) = $60, 80, 100, 140

    The nominal rate of return (Do/Po) :

    current D Rate of
    market return
    60 8 13,33%
    40 8 20,00%
    100 8 8,00%
    140 8 5,71%

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