Sample Exercise of Chapter 3

Because the weekend is so fresh and enjoyable, all of you might have many time to do many things. Everything will be possible. So, we would like to share some sample exercise of Chapter 3: Important investment concept:

I. How to find Expected Value:

                 Ev = R1.P1  + R2.P2 + ... + Rn.Pn

II. How to calculate Price of Bond:

                 

Exercises: Click here for documents PDF!

            1- Roath is running clothes shop. She is also a teacher. Her shop opens from 8:00 am to 7:00 pm every day. She thinks if every weekend, she opens shop from 10 am, she will sell up to $250.00. If she starts at 2 pm, she will get about $ 150.00 per day, and if she start late at 4 pm and close at 8:00 pm, she will get only about $ 100.00 per day. Please find out how much her average expected return per day ?

2- Bora are working with I-Qlick Cambodia. He is printer sellers. Selling in the showroom, he will sell up to 5 printers per day about $ 500.00. Selling to dealer about 8 printers ($800.00), and at the promotion booth, 3 printers ($300.00). However, they can know only percentage distribution of selling to dealers is 55%, and 34% is at showroom.Please find the expected value of Bora in selling printers?

3- Vichara is famous member of Unicity bond, he bought with the first price of each bond $100.00. 

He willing to sell his 5 bonds in the second market (sell to his friends). His  bond will last 2 years. Each coupon rate will be return to him every year is $ 30.00. Unicity market provides him interest rate according to real rate return = 1.6 %, inflation rate 0.4%, and risk return is 1 %.Please find out the total price of all of his bonds will be sold in the second market!

4- Sophea like viewing FanSlave of FB. Totally, she decided to buy 2 Bonds from FBFS cost $ 100.00. She can get paid in only 4 times of her coupon ( 1 time = 6 months), after 4 times, her bond will expire. Her bond discount rate per year is 8%. Please define each price of her bond that she will sell sooner !