Financial Math Answers

Questions: 2 329

Answers by our Experts: 2 002

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Search & Filtering

Consider Bond F250

Coupon rate (half yearly) 10,5% per year

Yield to maturity 7,955% per year

Maturity date 8 October 2054

Settlement date 29 May 2021

The all-in-price is [1] R129,73733%. [2] R126,13814%. [3] R123,49852%. [4] R134,98733%. [5] R131,24248%


The monthly expenses of Agoode restaurant for the month of march were as follows;

Food and beverage cost -$4000.00

Salaries for five workers - $750.00

Overhead cost-$500.00

Calculate; (i)the monthly gross profit if the total revenue is $8000.00

(ii) the monthly net profit.


If you deposit $10,000 in a bank account that pays 10% interest annually, how much will

be in your account after 5 years?


Since the birth of his daughter, 17 years ago, Derek has deposited $150.00 at the beginning of every month into an RESP. The interest rate on the plan was 3.60% compounded monthly for the first 9 years and 4.40% compounded monthly for the next 8 years.



John graduated from college and began working in the family restaurant business. At the end of the third month of the first year he began putting R7440.00 per annum in an individual retirement account and contributed to it for a total of ten years. The account interest at 11% per annum, compounded quarterly. The amount that was available to him after ten years is...

Find the amount by which the compound interest is larger than the simple interest. Round to the nearest cent.

Principal: $7825 Rate: 6% Years: 7


Suppose that the share price of company B is currently trading at £20 on the London Stock Exchange. The annual share price evolves according to a geometric Brownian motion with drift parameter µ = 0.7 and volatility parameter σ = 1.2. Suppose also that the continuously compounded interest rate is 4%.

(a) What is the share price at time t, S(t), equal to, under the above assumptions? [2]

(b) Find the probability that after 5 weeks the share has at least doubled its value. [4]

(c) What would change in the evolution of the share price, if it followed the risk-neutral [2] geometric Brownian motion?

(d) Suppose that there exists a European call option written on the share price of [2] company B with strike price K and and maturity time T. Write down the BlackScholes formula for the price of this option.

(e) What is the probability that you will exercise this call option with strike price [5] K = £22 at maturity T = 4 months? 



Sir Yvanna Samanta invest 10, 000FCFA in a fund with a monthly rate of 1%. After 12months she will receive?



) Mohit deposited Rs. 1,00,000 in a bank for 3 years offering interest rate of 6% compounded half- yearly during first year, at the rate of 12% compounded quarterly during second year and at 10% compounded continuously during third year. Find his balance after 3 years.


Mohit deposited Rs. 1,00,000 in a bank for 3 years offering interest rate of 6% 

compounded half- yearly during first year, at the rate of 12% compounded quarterly 

during second year and at 10% compounded continuously during third year. Find his 

balance after 3 years.