VoyForums
[ Show ]
Support VoyForums
[ Shrink ]
VoyForums Announcement: Programming and providing support for this service has been a labor of love since 1997. We are one of the few services online who values our users' privacy, and have never sold your information. We have even fought hard to defend your privacy in legal cases; however, we've done it with almost no financial support -- paying out of pocket to continue providing the service. Due to the issues imposed on us by advertisers, we also stopped hosting most ads on the forums many years ago. We hope you appreciate our efforts.

Show your support by donating any amount. (Note: We are still technically a for-profit company, so your contribution is not tax-deductible.) PayPal Acct: Feedback:

Donate to VoyForums (PayPal):

[ Login ] [ Contact Forum Admin ] [ Main index ] [ Post a new message ] [ Search | Check update time | Archives: 1, [2] ]

[ Next Thread | Previous Thread | Next Message | Previous Message ]

Date Posted: 07:05:38 10/12/01 Fri
Author: Dr. D.
Subject: Re: Problem Set. on Stocks and Bonds
In reply to: Beverly Bell 's message, "Problem Set. on Stocks and Bonds" on 04:36:25 10/11/01 Thu

>1. On problem no. 3, you refer to solving "problem no
>3" with different factors. Did you mean "problem no.
>2"?

Yes - it should have been #2

>2. On problems dealing with bonds, where you have the
>maturity (i.e., 20 years) but you are giving
>information at a different point in time , do you
>solve using the maturity years or the years at a
>particular time?

That's the big question - remember - at any point in time, the 5 elements of a bond (price, par value, maturity, mkt rate, and maturity) are linked by TVM concepts. If you have 4, you can solve for the 5th.

Sometimes you have to solve for a missing piece at one point, and then use that info to go forward. So, if you bought a 50 year bond two years ago, it would now be a 48 year bond. Next year it would be a 47 year bond (etc...)

[ Next Thread | Previous Thread | Next Message | Previous Message ]
[ Contact Forum Admin ]

Forum timezone: GMT-8
VF Version: 3.00b, ConfDB:
Before posting please read our privacy policy.
VoyForums(tm) is a Free Service from Voyager Info-Systems.
Copyright © 1998-2019 Voyager Info-Systems. All Rights Reserved.