FINE 442 Study Guide - Midterm Guide: Financial Market, Primary Market, Secondary Market
14 Apr 2015
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Solutions to assignment 1: price = 10,000(1-{(217/360)*0. 0829})= 9,500. 30. Solving for b = 98. 638: 0. 05={(par-200,000)/par} *(360/270) solving for par= 207,792. 25. Solving for ymm = 0. 06624% (101. 656/price) ^(365/44 )- 1= . 078798 solving for price = 100. 7308. Solving for r= 7. 51: a) financial market is one in which financial assets are bought and sold. There are many different types of financial markets, each one dealing with a different type of financial asset, serving a different set of customers, or operating in a different location. Indirect transfers through an investment dealer where the dealer serves as a middleman. The business sells its securities to the dealer who in turn sells them to investors. The securities are sold twice, when the two sales constitute a primary market transaction.
