Math 150
Outline
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Assignments
August 26, 2019
Unless otherwise indicated or implied, all interest rates are positive.
Section 1.5 13, 14, 15, 16
(14: If j is the rate of inflation, the rate r is called the real rate of interest. See Section 9.4, which we may cover later.)
Section 1.6 17, 18, 19
(17: Assume that the payments of $10,000 are to be made on the 18th, 19th, 20th, and 21st birthdays.)
Section 1.7 21, 22, 24
(21: You may assume that d < 1.)
Section 1.8 28, 29
Quiz 1: September 4, 2019
Each quiz covers the materials in the homework assigned in the previous week and in all the lectures up to and including the one on the previous Wednesday.
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September 4, 2019
Section 1.9 32, 36
Section 1.10 39
Section 2.3 2
Section 2.4 7, 12
Section 2.5 14, 15
Section 2.7 25, 26, 27
Miscellaneous problems 28
Section 3.2 1, 2, 4, 6
Read Sections 1 and 2 of the Study Note on Determinants of Interest Rates.
Quiz 2: September 11, 2019
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September 11, 2019
Section 3.3 9, 10
Section 3.4 13, 14, 15, 17
Section 3.5 18, 20, 22
Read Sections 4, 5, and 6 of the Study Note on Determinants of Interest Rates.
Quiz 3: September 18, 2019
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September 18, 2019
Section 3.6 24, 25, 27(a)
Section 3.7 28(a), 29, 30
Section 3.8 34
Miscellaneous problems 41, 42, 44
(42: Expressions could look different, but are actually mathematically equal.)
Section 4.2 1, 2
Quiz 4: September 25, 2019
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September 25, 2019
Section 4.3 7, 8, 10
Section 4.4 12, 14
Section 4.5 17, 18
Section 4.6 24
Section 4.7 28, 30, 32
Quiz 5: October 2, 2019
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October 2, 2019
Section 4.8 36, 38
Section 4.9 39, 43
(39: The question is on total payments, i.e., without interest.)
Miscellaneous problems 44, 48
Section 5.2 2, 3, 5, 6, 7
Section 5.3 10, 11, 13, 14, 15
Test 1: October 9, 2019
The test covers all the lectures and assignments up to and including Chapter 4.
You will not be tested on amortization.
No quiz on October 16, 2019
Quiz 6: October 23, 2019
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October 23, 2019
Section 5.5 27
Section 5.6 31, 33
Chapter 5 Miscellaneous problems 44, 46, 50
Section 6.3 4, 5, 6, 8
For problems on bonds, assume that bonds are redeemable at their par values, unless you are told otherwise.
If you do not have a financial calculator, you can use linear approximation to determine an interest rate.
Quiz 7: October 30, 2019
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October 30, 2019
Assume that bonds are redeemable at their par values, unless you are told otherwise.
If you do not have a financial calculator, you can use linear approximation to determine an interest rate.
Section 6.4 11, 12, 13
Section 6.6 21, 22
Section 7.2 4, 5, 6
Section 7.3 8
Section 7.4 10, 12, 16
(12: from the perspective of the lender)
Quiz 8: November 6, 2019
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November 6, 2019
Section 7.6 25, 26, 27, 28
Section 7.9 43, 45
Miscellaneous problems 51 (Assume that the bond is redeemable at its par value.)
Section 9.4 1, 2, 3, 9
Read Section 3 of the Study Note on Determinants of Interest Rates.
Test 2: November 20, 2019
The test covers all the lectures and assignments up to and including the one on November 6, 2019.
The emphasis is on topics after the first test.
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November 20, 2019
Section 10.3 1, 2, 5
Section 10.4 10, 11(a), 13
Section 10.5 16, 17, 19, 21
Quiz 9: December 2, 2019 (Note: This is a Monday.)
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December 2, 2019
Section 11.2 4, 5, 6, 7
(5: Assume that the bond is redeemable at its par value.)
Section 11.3 8, 9, 11, 14
Read the Study Note on duration and convexity.
Final: December 13, 2019 (Friday) 12:15 PM - 2:30 PM
You are responsible for everything that we have covered in class this semester.