ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.1 : (i) In the pricing of engineering bonds, 3 sets of data for Portfolio Value, Probability, Senior Tranche and Junior Tranche are : $2000, 81 %, $1000, $1000; $1000, 18 %, $1000, $0; $0, 1 %, $0, $0. By assuming independent defaults, find the price for : (a) Senior Tranche; (b) Junior Tranche. (ii) Assuming statistical independence of the values in the sample, the standard deviation of the mean (S) is related to the standard deviation of the distribution (s) by : N x S x S = s x s, where N is the number of observations in the sample used to estimate the mean. In a drug development project, let s = 1. Find the value of S if such a similar project is performed 100 times.
ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.1 : (i)(a) Price for Senior Tranche = 99 % x $1000 + 1 % x $0 = $990. (b) Price for Junior Tranche = 81 % x $1000 + 19 % x $0 = $810. (ii) Let N = 100, s = 1. Then S x S = s x s / N = 1 / 100, S = 1 / 10. The answer is given by Kang Chuen Tat; PO Box 6263, Dandenong, Victoria VIC 3175, Australia; SMS +61405421706; chuentat@hotmail.com; http://kangchuentat.wordpress.com.
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QUANTUM COMPUTING - EXAMPLE 32.10 : In quantum computing, the conversion of Control Not (CNOT) gate in two input quantum bit gate could be decribed as : | 00 > --> | 00 >, | 01 > --> | 01 >, | 10 > --> | 11 >, | 11 > --> | 10 >. If | P > = 0.707 ( | 01 > - | 11 > ), find the value of CNOT | P >.
ENGINEERING PHYSICS - EXAMPLE 30.3 : (a) The quantum number m is given by m = -s, -s + 1. If s = 0.5, find the values of m. (b) | T > = (cos T) | V > + (sin T) | H >. The V and H states form a basis for all polarizations. Let cos T = 0.8. (i) If (sin T)(sin T) + (cos T)(cos T) = 1, find the value of sin T. (ii) For | T > = a | V > + b | H >, where a x a represents the probability of | V > and b x b represents the probability of | H >. Which one is more abundant, | V > or | H >? (iii) Find the value of T without using any mathematical tools.
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QUANTUM COMPUTING - EXAMPLE 32.4 : A system of linear congruences consists of 3 equations : X ≡ 1 (mod 2), X ≡ 3 (mod 3), X ≡ 4 (mod 5). X has positive values. (a)(i) List the values of these equations from 1 to approximately 40. (ii) Find the first smallest value and second smallest value of X. (iii) Guess the third smallest value of X. (b) Let X ≡ Aa (mod Ma), X ≡ Ab (mod Mb), X ≡ Ac (mod Mc). According to Chinese remainder theorem, X ≡ (Aa x Ya x Md + Ab x Yb x Me + Ac x Yc x Mf) [ mod (Ma x Mb x Mc) ]. (i) Show that Ma, Mb and Mc have the greatest common divisor of Ma x Mb x Mc. (ii) Find the values of Md, Me and Mf if Md = Mb x Mc, Me = Ma x Mc and Mf = Ma x Mb. (iii) Find the values of Ya, Yb and Yc if Ya = Remainder of (Md / Ma), Yb = Remainder of (Me / Mb) and Yc = Remainder of (Mf / Mc). (iv) Use Chinese remainder theorem to find X.
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ENGINEERING PHYSICS - EXAMPLE 30.2 : The Planck-Einstein relation connects the particulate photon energy E with its associated wave frequency f to produce E = hf. Let h to be the Planck constant. The frequency f, wavelength L and speed of light c are related by E = hc / L. With p denoting the linear momentum of a particle, the de Broglie wavelength L of the particle is given by L = h / p. (a) Find the equation of E as a function of p and c. (b) If E has a unit of electron-volt and f has a unit of 1 / second, then what is the unit of h?
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