question 1

1) pmt 40 2)
n 40 n 39
interest 4.50% interest 5%
FV 1000 FV 1000
PV 907.99 ₸ PV 2 829.83 ₸
78.16 ₸
rate of return -4%

question 2
a) n 4 b) n 8 c)
pmt 80 pmt 80
FV 1000 FV 1000
interest 9% interest 9%
PV 967.60 ₸ PV 944.65 ₸

d) n 4 e) n 8 f)
pmt 80 pmt 80
FV 1000 FV 1000
interest 7% interest 7%
PV 1,033.87 ₸ PV 1,059.71 ₸

question 3 longer length of the maturity period afffects more to the YTM

question 4 coupon payment is bigger than yield to maturity

PV is bigger that FV
question 5
a) interest 6% b) interest 8%
n 2 n 2
FV 1000 FV 1000
PMT 80 PMT 80
PV 1036.67 PV 1000.00
36.67 0.00
rate of return 12% rate of return 8% rate of return
 n 30 g)
pmt 80
FV 1000
interest 9%
PV 897.26 ₸

n 30 h)
pmt 80
FV 1000
interest 7%
PV 1,124.09 ₸

interest 10%
n 2
FV 1000
PMT 80
PV 965.29
-34.71
rate of return 5%
 long term bonds affected more in increasing interest rates rather than short term bonds

long term bonds affected more in decreasing interest rates rather than short term bonds