ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.7 : An engineering investor purchases a $1000 bond that matures in 25 years. The coupon rate is 8 %. The purchase price is at 95 or 95 % of the par bond value. (a) What is the purchase price of the bond? (b) How much discount is enjoyed by the investor on average each year? (c) Find the income generated from coupon rate each year. (d) Find the overall interet rate or Yield to Maturity (YTM) by using the formula : YTM = [ Answer in (c) + Answer in (b) ] x 200 / [ par bond value + Answer in (a) ].
ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.7 : (a) Purchase price = 0.95 x par bond value = 0.95 x $1000 = $950. (b) Annual discount = (total discount) / (25 years) = (0.05 x par bond value) / 25 = 0.05 x $1000 / 25 = $2. (c) Annual coupon rate payment = par value x coupon rate = $1000 x 0.08 = $80. (d) YTM = [ Answer in (c) + Answer in (b) ] x 200 / [ par bond value + Answer in (a) ] = (80 + 2) x 200 / (1000 + 950) = 8.41 %. 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 |
send previousyear question paper for ongc gt 2011 chemical engineering written exam
what is difference between B.Tech. and B.E. in chemical engineering
What is the purpose of capacitor?
why transmission lines using 220KV.
ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.4 : A university is enrolling new students of biochemical engineering degree. A long queue is formed during registration. Let L = rate of newcomers to a queue, m = number of clients served at a certain time, T = time in system. In M / M / 1 queue, let T = time waiting in a queue + service time, L = 2 / second, m = 3 / second. (a) Find the service time, A = 1 / m. (b) Calculate time waiting in a queue, B = A (L / m) / (1 - L / m). (c) What is the value of T?
how many TDS & TOTAL HARDNESS, PH of drinking water is recomanded for human being use.
ENGINEERING ECONOMY - EXAMPLE 7.3 : There are 2 alternatives of investment. Choice 1 : A trader offers you an investment opportunity where your investment of A$15000 presently will be A$18000 after 4 years. Choice 2 : A bank offers you 5 % annual return for your initial investment of A$15000. Question a : What is the equivalent bank payment after 4 years? Question b : By using the concept of equivalence in engineering economy, which is the better choice, between 1 and 2, that will be more profitable after 4 years?
How much water is lost through a commercial cooling tower system with a throughput of about 600 gpm?
MASS TRANSFER - EXAMPLE 4.2 : In a non-dilute absorber, graphical method is used to represent the process. In an X - Y coordinate system, X-axis represents mole of carbon dioxide / mole of water and Y axis represents mole of carbon dioxide / mole of nitrogen. The inlet gas stream consists of 8 mol % of carbon dioxide in nitrogen. (a) Find the S / G minimum as a slope that goes through the point (0, 0.0304) and (0.0000488, 0.086957). (b) Find the actual slope of operating line when it is 1.5 times the S / G minimum! (c) Find the value of x for inlet gas stream when y = 1640 x, y is mole fraction of carbon dioxide in nitrogen.
When using a pumping loop to mix two miscible fluids in a tank, when can the content are considered well mixed?
can we apply Bernoulli theorem for liquid?
UNIT OPERATION - EXAMPLE 9.3 : 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.