ENGIN 120 Study Guide - Midterm Guide: Engineering Economics, Spot Contract
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Sid: any communication with other students during the exam (including show- ing, viewing or sharing any writing) is strictly prohibited. Any violation will result in a score of 0 points for the exam: clearly state all the mathematical expressions that are needed to solve the problems. No credit will be given to numerical answers without the proper setup: answer each of the following questions in the space provided. You took out a 30-year loan for ,000 at an apr of 12%, compounding semiannually. When will the loan be paid o ? (non-integer solution is okay) Note: the extra payment starts in period 61: (25 points) an investor is considering the purchase of zero-coupon bonds with ma- turities of 1, 3, or 5 years. Currently the spot rates for 1-, 2-, 3-, 4-, and 5-year zero-coupon bonds are, respectively, 0. 02, 0. 03, 0. 04, 0. 0425, and 0. 045 per year with annual compounding.
