Finance
at Maastricht University
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You cannot calculate it here, but you have the information that even though the company paid a coupon of 5€, the price of the bond went up. However, when the YTM increases, it usually causes the price of the bond to go down. (Nonetheless, here you can get that answer C is the right one)
Thanks Singer
I don't get why in projet n°3, they subtract 9million rather than 11 million ? Is it a typo ?
Yep, most probably a typo
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A document with the calculations were posted last year :)
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Hi! No sorry, but the slides are online :D
You get 0.5 by dividing the debt-to-equity ratio (1.0) by 2 right?
basically you take the debt-to-equity ratio divided by itself plus 1, for instance: debt-to-equity 1.5 (debt is 1.5 times as large as equity), so 1.5/(1.5+1)= 60% for rd and thus 40% for re. same procedure here in 3: 1/(1+1)= 0.5 for both rd and re. so not just dividing by 2, you might get to a another percentage as a result - if you take the debt-to-equity of 1.5 as an example
thanks!
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Looks like it is.
Yes I think they had the same book
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Oh, have a sense of humour. At least he wrote in English.
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I got it, the rd = cost of debt = ytm we calculated in a
Thanks! How did u calculate the YTM?
because the debt to equity ratio = 1.0 -> debt = equity -> 0.5 for both
Thx!
Task 10 anyone ?
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if that's the reason you downvote, you need to find a hobby.
Thanks for compiling the summary.
these downvoters need to get a life. its fucking studydrive you nerds. get a life.
Can somebody please upload task 10 ?
I have seen this in many summaries, this is not true. The buyer is only willing to pay the bid price and the marketmaker cannot get the difference between the bid and ask. This would mean that the buyer pays more than he is willing to do and the seller gets less money than he wants to get.
in theory nope but it has been shown that in practice this might be the case
Hey there. In these kind of exercises always look out for specific keywords. Here they mention the word forever which leads us to a perpetuity formula. This combined with an IRR calculation where the NPV of a project is 0 gives us the following: NPV=-Investment+PV(Perpetuity) --> 0=-Investment+1500/0,05. If we solve this for the investment, we get to 30000. As we get 1500 per year, it takes 20 years until we have our investment back. Hope that clarifies it :)
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Cuz you don't calculate it the correct way lol
Got it now :/ ahaha
19) 0=-350+25/(r-0.02) for Kimjong and 0=-350+50/r for Trumpie, calculate it and you'll see that B is correct.
20) -350+25/(r-0.02)=-350+50/r and you'll get to C.
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wow that's so helpful!! Thank you :)
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= 37,500*
True my bad ahah :/
I think you can & you should get to the same result! 😊
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Thanks!
welcome!
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how did you do the table with the five columns asked, can someone gave me the formula
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The Formula is in the manual and the daily return is the average of all daily returns. The calculation is on Sheet 1, marked in green.
awesome thank you!
It is the return you calculated in a) with the formula from the manual
should be x = -15, 64 I think ( you did 0.08x - 0.045x instead of 0.08x + 0.045x) :)
yees
The final answer for that task is right as it is supposed to be 57% and 43%, but the process is wrong because you don't get 57 if you follow that calculation (you always get -15,64 or -58,43 instead of 57)
The hero who put all the answers online for the exercises of the tutorials under the name ''ALL YOU NEED TUTORIAL ...'', you're the GOAT. Could you perhaps also upload them for the upcoming tutorials? Thanks in advance!
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Thankss ☺️
Thanks!
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Why, for Step 3, did you use the formula for the Volatility of a Large Portfolio?
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exactly. thank you jasper!!
But why then do you insert 0.03125 for Average Variance? Isn't this the Average Covariance? And why do you insert the correlation for average covariance?
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still waiting untill I have enough for the hoodie so I can be a real studydrive slut!
please wear the hoodie to the lectures
Shouldn't it be "Probability of return x (Return - Expected Return)^2?" Page 355
yes this is wrong
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It is all the daily returns for the six companies, put into the correlation function under data analysis.
I demand some more elaboration on the answer of question 3
Hey Lucie. What we do here is a Future Value calculation for which we use the following Forumla: FV=PV*(1+r)^n. Our FV is 2000, PV 1000 and r is 5%. Thus, we get to 2000=1000*1,05^n. We can simplify this to 1,05^n=2, then apply the logarithm and get no n= ca.14,2. Hope this helps you :)
thanksss!
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Thanks :D
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