Mastering Financial Mathematics In Mircosoft Excel A Practical Guide For Business Calculations 1st Edition Alastair L. Day - Solutions

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The separate data file for this chapter (MFMath3e_16_Data) contains some excess return figures for an index and an individual stock. Produce the following from the data:■ Draw a frequency table and histogram chart.■ Produce full descriptive statistics using functions or the Analysis ToolPak.■
Extend the coupon stripping model to allow for up to 20 periods and calculate the profit or loss on this scenario. The model (see Figure 6.8) requires the use of dates rather than a fixed number of periods, together with IF statements to cease the coupon payments after 31 December 2027 and trigger
Write a model to calculate and amortise a structured loan at a rate of 10 per cent. The cash flow is:The model will need to use the factors method to find the subsequent rental X and a cash flow with an IRR could be used to check the final rental. Six rentals of 1,000 on signing Six further monthly
Use the methodology in the chapter to price for dates that do not fall exactly on the quarter or period dates (see Figure 9.11). The current date is in November and no six-month figure has been quoted for the period December to June but the prices shown are available with a sloping yield curve.The
A company needs to borrow money in six months’ time for six months and interest rates are expected to rise. The current data is given in Figure 10.11.The loan is 5,000,000 and the standard contract size 1,000,000, meaning that five contracts are required. Calculate the overall position if the
A treasurer has the option of borrowing in dollars or euros. Construct a model to ascertain if there is a potential saving in one of the currencies over 91 days. Also, what is the break-even exchange rate? The data are: Spot EUR/USD 1.4000 Swap 0.0100 USD Interest 3.000% EUR Interest 5.000% EUR
Complete a spreadsheet to evaluate a lease from a lessor’s standpoint using these data:The tax regime uses a 20.0 per cent declining balance method, which is the DB function in Excel.Calculate the required rental and client interest rate and produce a table of the sensitivity to leverage using
An amount of 100,000 is required in 3.25 years’ time. Interest rates are currently 8 per cent and a company wishes to invest an amount in bonds which will grow to 100,000 at the time of maturity. Two bonds are available (see Figure 5.13).Figure 5.13■ Calculate the price, duration and modified
A company needs to borrow money in six months’ time for six months and interest rates are expected to rise. The current data is given in Figure 10.11.The loan is 5,000,000 and the standard contract size 1,000,000 meaning that five contracts are required. Calculate the overall position if the
A treasurer has the option of borrowing in dollars or euros. Construct a model to ascertain if there is a potential saving in one of the currencies over 91 days. Also what is the breakeven exchange rate? The data is: Spot EUR/USD 1.4000 Swap 0.0100 USD Interest 3.000% EUR Interest 5.000% EUR Margin
Produce a spreadsheet to calculate the payoff from this strategy: (1) Purchased call options Exercise price 25 Premium 0.5 Number of contracts 4 Minimum number 200 Share price at option expiration 30 (2) Purchased put options Exercise price 30 Premium 4.5 Number of contracts 4 Minimum number 200
Use options methodology to value an option to abandon with the data in Figure 13.5. This is a put option where the abandonment leads to a 50 per cent recovery of 500,000.The total project lasts ten years and an abandonment option exists for the first five years. The volatility is estimated at 20.0
You have the data below on a company. Write an Excel model to value the cash flows together with two sensitivity tables: a one-dimensional table to WACC and a two-way table to the WACC and growth rate.The annual cash flow forecast begins in one year’s time. The final cash flow can be used for a
The separate data file for this chapter (FT5_16_Data) contains some excess return figures for an index and an individual stock. Produce the following from the data:■ Draw a frequency table and histogram chart.■ Produce the full descriptive statistics using functions or the Analysis ToolPak.■
A loan of 100,000 is payable over five years with monthly payments of 60,000 commencing one month after the inception date. The loan repayment is 2,000 per month and the nominal rate 10 per cent. How much capital remains at the end of five years?
If the future value is 5,000 what does the loan payment need to be?Build a spreadsheet using the functions demonstrated in this chapter.
A 100,000 loan agreement has payments and inputs as follows. Calculate the XNPV, XIRR, NPV and IRR of the resulting cash flows. Item Initial Cash Flow (PV) Start Date Interval (Months) Year One Notes 10,000.00 01-Jan-2008 6 1,000.00 Year Two Year Three 1,500.00 2,000.00 100.00 Salvage Value (FV)
Two bonds bear the characteristics below. Calculate the prices and using a data table in Excel check the relevant prices if the yield falls or rises by 1 per cent. This should confirm the bond which is more responsive to changes in yield. Period 6.0 yrs 10.0 yrs Coupon Rate % 10.00 9.75 Redemption
An amount of 100,000 is required in 3.25 years time. Interest rates are currently 8 per cent and a company wishes to invest an amount in bonds, which will grow to 100,000 at the time of maturity. Two bonds are available (see Figure 5.13).■ Calculate the price, duration and modified duration and
Extend the coupon stripping model to allow for up to twenty periods and calculate the profit or loss on this scenario. The model (see Figure 6.8)requires the use of dates rather than a fixed number of periods together with IF statements to cease the coupon payments after 31 December 2013 and
Write a model to calculate and amortize a structured loan at a rate of 10 per cent. The cash flow is:Six rentals of 1,000 on signing Six further monthly rentals of 1,000 Sixty further rentals of X starting in the next month after the initial rentals A final rental is payable on expiry of 20,000.00
Value the cash flows for the floating side of this swap. The client has provided this information for the annual matched cash flows and wants to know whether the swap provides positive benefits.In addition, the yields for zero coupon bonds are: Item Notional value Start Input 10,000.00 01-Sept-06

Mastering Financial Mathematics In Mircosoft Excel A Practical Guide For Business Calculations 1st Edition Alastair L. Day - Solutions

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