FIN 501 Final: FIN 501 formula sheet

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orchidmarten118

23 Nov 2017

School

Ryerson University

Department

Finance

Course

FIN 501

Professor

Lianzeng(edward) Yuan

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Document Summary

+(cid:884)(cid:1876)(cid:3003)(cid:1876)(cid:3004)(cid:3003)(cid:3004)(cid:1829)(cid:1867)(cid:1870)(cid:1870)(cid:4666)(cid:1844)(cid:3003)(cid:1844)(cid:3004)(cid:4667) (cid:1839)(cid:1853)(cid:1861)(cid:1866)(cid:1872)(cid:1857)(cid:1866)(cid:1853)(cid:1866)(cid:1855)(cid:1857) (cid:1839)(cid:1853)(cid:1870)(cid:1859)(cid:1861)(cid:1866)=(cid:1840)(cid:1873)(cid:1865)(cid:1854)(cid:1857)(cid:1870) (cid:1867)(cid:1858) (cid:1845) (cid:1853)(cid:1870)(cid:1857)(cid:1871)(cid:1876)(cid:1842) (cid:1827)(cid:1865)(cid:1867)(cid:1873)(cid:1866)(cid:1872) (cid:1828)(cid:1867)(cid:1870)(cid:1870)(cid:1867)(cid:1875)(cid:1857)(cid:1856) (cid:3003)(cid:2870) (cid:3002)(cid:3003)(cid:1829)(cid:1867)(cid:1870)(cid:1870)(cid:4666)(cid:1844)(cid:3002)(cid:1844)(cid:3003)(cid:4667) (cid:1876)(cid:3002) = (cid:3002)(cid:2870)+(cid:3003)(cid:2870) (cid:884)(cid:3002)(cid:3003)(cid:1829)(cid:1867)(cid:1870)(cid:1870)(cid:4666)(cid:1844)(cid:3002)(cid:1844)(cid:3003)(cid:4667) (cid:1839)(cid:1853)(cid:1870)(cid:1859)(cid:1861)(cid:1866)=(cid:1827)(cid:1855)(cid:1855)(cid:1867)(cid:1873)(cid:1866)(cid:1872) (cid:1831)(cid:1869)(cid:1873)(cid:1861)(cid:1872)(cid:1877) (cid:1848)(cid:1853)(cid:1864)(cid:1873)(cid:1857) (cid:1867)(cid:1858) (cid:1845)(cid:1872)(cid:1867)(cid:1855)(cid:1863) (cid:1840)(cid:1873)(cid:1865)(cid:1854)(cid:1857)(cid:1870) (cid:1867)(cid:1858) (cid:1845) (cid:1853)(cid:1870)(cid:1857)(cid:1871)(cid:1876)(cid:1842) (cid:1842) =(cid:1827)(cid:1865)(cid:1867)(cid:1873)(cid:1866)(cid:1872) (cid:1828)(cid:1867)(cid:1870)(cid:1870)(cid:1867)(cid:1875)(cid:1857)(cid:1856)(cid:1840)(cid:1873)(cid:1865)(cid:1854)(cid:1857)(cid:1870) (cid:1867)(cid:1858) (cid:1845) (cid:1853)(cid:1870)(cid:1857)(cid:1871) (cid:883) (cid:1839)(cid:1853)(cid:1861)(cid:1866)(cid:1872)(cid:1857)(cid:1866)(cid:1853)(cid:1866)(cid:1855)(cid:1857) (cid:1839)(cid:1853)(cid:1870)(cid:1859)(cid:1861)(cid:1866) (cid:1835)(cid:1866)(cid:1856)(cid:1857)(cid:1876) (cid:1838)(cid:1857)(cid:1874)(cid:1857)(cid:1864)=(cid:1845)(cid:1873)(cid:1865) (cid:1867)(cid:1858) (cid:1845)(cid:1872)(cid:1867)(cid:1855)(cid:1863) (cid:1842)(cid:1870)(cid:1861)(cid:1855)(cid:1857)(cid:1871) (cid:1830)(cid:1861)(cid:1874)(cid:1861)(cid:1871)(cid:1867)(cid:1870) (cid:1848)(cid:4666)(cid:882)(cid:4667)= (cid:1830)(cid:4666)(cid:883)(cid:4667) (cid:4666)(cid:883)+(cid:1863)(cid:4667)+ (cid:1830)(cid:4666)(cid:884)(cid:4667) (cid:4666)(cid:883)+(cid:1863)(cid:4667)(cid:2870)+ + (cid:1830)(cid:4666)(cid:1846)(cid:4667) (cid:4666)(cid:883)+(cid:1863)(cid:4667)(cid:3021) (cid:1848)(cid:4666)(cid:882)(cid:4667)=(cid:1830)(cid:4666)(cid:882)(cid:4667)(cid:4666)(cid:883)+(cid:1859)(cid:4667) [(cid:883) ((cid:883)+(cid:1859)(cid:883)+(cid:1863))(cid:3021)] (cid:1859) (cid:1863) (cid:1863) (cid:1859) (cid:1848)(cid:4666)(cid:882)(cid:4667)=(cid:1846)(cid:1850) (cid:1830)(cid:4666)(cid:882)(cid:4667) (cid:1859)=(cid:1863) (cid:1848)(cid:4666)(cid:882)(cid:4667)=(cid:1830)(cid:4666)(cid:882)(cid:4667)(cid:4666)(cid:883)+(cid:1859)(cid:4667) (cid:4666)(cid:1863) (cid:1859)(cid:4667) (cid:1845)(cid:1873)(cid:1871)(cid:1872)(cid:1853)(cid:1861)(cid:1866)(cid:1853)(cid:1854)(cid:1864)(cid:1857) (cid:1859)(cid:1870)(cid:1867)(cid:1875)(cid:1872) (cid:1870)(cid:1853)(cid:1872)(cid:1857)=(cid:1844)(cid:1841)(cid:1831) (cid:1850)(cid:1844)(cid:1857)(cid:1872)(cid:1857)(cid:1866)(cid:1872)(cid:1861)(cid:1867)(cid:1866) (cid:1844)(cid:1853)(cid:1872)(cid:1857) (cid:1844)(cid:1857)(cid:1872)(cid:1873)(cid:1870)(cid:1866) (cid:1867)(cid:1866) (cid:1831)(cid:1869)(cid:1873)(cid:1861)(cid:1872)(cid:1877)(cid:4666)(cid:1844)(cid:1841)(cid:1831)(cid:4667)=(cid:1840)(cid:1857)(cid:1872) (cid:1835)(cid:1866)(cid:1855)(cid:1867)(cid:1865)(cid:1857) (cid:1831)(cid:1869)(cid:1873)(cid:1861)(cid:1872)(cid:1877) (cid:1859)(cid:2870)

Related Questions

Please help with the below problem. I don't understand how to solve. Please show work and steps so I will understand.

Apply cluster analysis to the numerical data in the excel file credit approval decisions. Analyze the clusters and determine if cluster analysis would be a useful classification method for approving or rejecting loan application.

Modified Credit Approval Decisions

Homeowner Credit Score Years of Credit History Revolving Balance Revolving Utilization Decision

1 725 20 $11,320 25% 1

1 573 9 $7,200 70% 0

1 677 11 $20,000 55% 1

0 625 15 $12,800 65% 0

0 527 12 $5,700 75% 0

1 795 22 $9,000 12% 1

0 733 7 $35,200 20% 1

0 620 5 $22,800 62% 0

1 591 17 $16,500 50% 0

1 660 24 $9,200 35% 1

1 700 19 $22,000 18% 1

1 500 16 $12,500 83% 0

1 565 6 $7,700 70% 0

0 620 3 $37,400 87% 0

1 774 13 $6,100 7% 1

1 802 10 $10,500 5% 1

0 640 7 $17,300 59% 0

0 523 14 $27,000 79% 0

1 811 20 $13,400 3% 1

0 763 2 $11,200 70% 0

0 555 4 $2,500 100% 0

0 617 9 $8,400 34% 0

1 642 13 $16,000 25% 1

0 688 3 $3,300 11% 1

1 649 12 $7,500 5% 1

1 695 15 $20,300 22% 1

1 701 9 $11,700 15% 1

0 635 7 $29,100 85% 0

0 507 2 $2,000 100% 0

1 677 12 $7,600 9% 1

0 485 5 $1,000 80% 0

0 582 3 $8,500 65% 0

1 699 17 $12,800 27% 1

1 703 22 $10,000 20% 1

0 585 18 $31,000 78% 0

1 620 8 $16,200 55% 0

1 695 16 $9,700 11% 1

1 774 13 $6,100 7% 1

1 802 10 $10,500 5% 1

0 640 7 $17,300 59% 0

0 536 14 $27,000 79% 0

1 801 20 $13,400 3% 1

0 760 2 $11,200 70% 0

0 567 4 $2,200 95% 0

0 600 10 $12,050 81% 0

1 702 11 $11,700 15% 1

1 636 8 $29,100 85% 0

0 509 3 $2,000 100% 0

0 595 18 $29,000 78% 0

1 733 15 $13,000 24% 1

New Data to Classify

Homeowner Credit Score Years of Credit History Revolving Balance Revolving Utilization Decision

1 700 8 $21,000 15%

0 520 1 $4,000 90%

1 650 10 $8,500.00 25%

0 602 7 $16,300.00 70%

0 549 2 $2,500.00 90%

1 742 15 $16,700.00 18%

Suppose there are three states of the world tomorrow, S = 3 and there are two securities, J = 2. The first one is a risk-free bond and has payoff x^1 = (1, 1, 1). The other one is a Certificate of Deposit and has payoff x^2 = ( 1/2 , 1/2 , 1/2 ). Are markets complete? Explain. Is security 2 redundant? Explain. Write down the maximization problem of the agent that has endowment 2 today and endowments (0, 1, 2) in the next period and short sales are not allowed.

violetmammoth282

1	Bond MathâAmortizing Loan

	Bank ABC makes a $10,000,000 loan to its customer, XYZ. Bank ABC receives a fee at closing equal to 1% of
	the principal amount of the loan. The loan has a 5.25% per annum, with interest payable quarterly. Principal
	is payable quarterly in 20 equal payments on each quarterly interest payment date. The loan closed on
	May 1, 2017; interest and principal is payable on February 1, May 1, August 1 and November 1 of each year,
	beginning August 1, 2017. Interest accrues and is payable based on a 30/360 basis.
	Assume the initial market yield is 5.25%.

	(a) Show cash flows on the loan and the loan amortization schedule in the table below.

	Date	Beginning Balance	Interest	Principal	Ending Balance
	5/1/17
	8/1/17
	11/1/17
	2/1/18
	5/1/18
	8/1/18
	11/1/18
	2/1/19
	5/1/19
	8/1/19
	11/1/19
	2/1/20
	5/1/20
	8/1/20
	11/1/20
	2/1/21
	5/1/21
	8/1/21
	11/1/21
	2/1/22
	5/1/22

	(b) Assuming that all payments are made on the due date and there are no prepayments, what is the
	internal rate of return based on quarterly compounding and considering fees, earned by Bank ABC on the loan?


	(c) What is the internal rate of return calculated in (b) above stated on a semi-annual bond equivalent basis?


	(d) If the market rate of interest on the loan increases to 5.35% per annum, compounded quarterly, what is the
	market value of the loan?


	(e) If the market rate of interest on the loan decreases to 5.15% per annum, compounded quarterly, what is the
	market value of the loan?


	(f) What is the average life of the loan assuming no prepayments?
		years

	(g) What is the approximate duration of the loan? Use 10bp yield changes.




	(h) What is the approximate convexity of the loan? Use 10bp yield changes.

ultramarineoyster8

FIN 501 Final: FIN 501 formula sheet

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