ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.2 : (a) In the pricing of a coupon bond, the formula is : P = c / (1 + r) + (c + B) / [ (1 + r) (1 + r) ] for 2 years to maturity, where c = annual coupon payment (in dollars, not a percent), B = par value, P = purchase price. Five years ago someone bought a 20 year coupon bond and would like to get rid of it now : A coupon rate of 7 %, it matures in exactly 2 years, par value is $1000, current interest rate is 5 %. (i) Find the value of c. (ii) Find the value of r or interest rate. (iii) Find the value of P. (iv) Guess the formula for P when the maturity period is 3 years, if such formula for 1 year duration is P = (c + B) / (1 + r). (b) In lemma of Ito on a Forward, recall that a forward contract is priced at : ln F = ln S + rT. Find the value of F in 5 decimal points when S = $100, r = interest rate = 0.05 / year, T = duration = 1 year.
ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.2 : (a) (i) c = $1000 x 0.07 = $70. (ii) r = 5 % = 0.05. (iii) P = c / (1 + r) + (c + B) / [ (1 + r) (1 + r) ] = 70 / (1 + 0.05) + (70 + 1000) / [ (1 + 0.05) (1 + 0.05) ] = $1037.19. (iv) For 3 year maturity period prediction by induction, P = c / (1 + r) + c / [ (1 + r) (1 + r) ] + (c + B) / [ (1 + r) (1 + r) (1 + r) ]. (b) Let ln F = ln S + rT = ln 100 + 0.05. Then F = $105.127109 or F = $105.12711 (in 5 decimal points). 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.
| Is This Answer Correct ? | 0 Yes | 0 No |
Whether long question or short question I can expect in the interview at IOCL ?
QUANTUM COMPUTING - EXAMPLE 32.6 : (a) Let H | 0 > = 0.707 ( | 0 > + | 1 > ), H | 1 > = 0.707 ( | 0 > - | 1 > ). Find the values for H | 0 > + H | 1 > and H | 0 > - H | 1 >. (b) In quantum computing, a qubyte is a quantum byte, or 8 quantum bits, a sequence processed as a unit. A qubit is a quantum bit. According to Alexander Holevo in his theorem, n qubits cannot carry more than n classical bits of information. What is the maximum amount of classical bits of information that can be carried by 1 qubyte.
sir, kindly explain to me that how to calculate volume of torrispherical vessel which is used in pharma company ss reactor bottom dish volume. thank u.
ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.28 : In the development of a small engineering facility for biochemical processing, completed contract method is applied in its construction accounting. In a short contract period, let the (contract price) = A. Let the (costs to date) = B; (estimated cost to complete) = C. (a) Find the values of : (i) estimated total costs; (ii) total estimated profit; (iii) percent completion to date. (b) If the project contract is 100 % completed : (i) find the total gross profit recognized; (ii) what is the exact numerical value of C?
BIOCHEMICAL ENGINEERING INSTRUMENTATION - EXAMPLE 29.3 : In thin layer chromatography (TLC), let retention factor Rf = (distance traveled by solute) / (distance traveled by solvent). Silica gel is used as stationary phase which is more polar than the hexane solvent as mobile phase. If the Rf values of 3 solutes A, B and C are 1.5, 0.75 and 1 respectively, compare the polarities of A, B and C with reasons.
How does a tank-blanketing valve operate?
What is the total power requirement for Kerala
Question 34 – In the distillation of binary systems by Mc Cabe Thiele method, the equation for the line of top section is given by y = [ R / (R + 1) ] x + XD / (R + 1). 2 points on the line are (0.99, 0.99) and (0, 0.36). Find the reflux ratio of R and XD.
Why methanol like petroleum compounds are stored in underground storage tanks?
2 Answers MPCL, NFIL, Reliance, UPL,
Why is double the amount of gas collected in one of the test tubes in electrolysis of water than th amount collected in the other? Name this gas?
Are there any methods of preventing cracking of carbon steel welds in refining environments?
what is mean by chemical engineering and its scope in industry
Civil Engineering (5086)
Mechanical Engineering (4456)
Electrical Engineering (16639)
Electronics Communications (3918)
Chemical Engineering (1095)
Aeronautical Engineering (239)
Bio Engineering (96)
Metallurgy (361)
Industrial Engineering (259)
Instrumentation (3014)
Automobile Engineering (332)
Mechatronics Engineering (97)
Marine Engineering (124)
Power Plant Engineering (172)
Textile Engineering (575)
Production Engineering (25)
Satellite Systems Engineering (106)
Engineering AllOther (1379)