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Help needed with Investment Planning 1 Module (Kaplan)

Discussion in 'Financial Planning' started by Scotty1975, 2nd Mar, 2010.

  1. Scotty1975

    Scotty1975 Member

    Joined:
    2nd Mar, 2010
    Posts:
    7
    Location:
    Adelaide, SA
    Hey,

    Im just after people's feedback and help in relation to the following question in my Investment Planning 1 assignment.

    Question:

    Calculate the purchase price of a 10-year government bond parcel with two full years remaining in its term. The bond’s yield rate is 8.95% p.a., paid as a half-yearly coupon, and assume that the prevailing market interest rate is 7.50% p.a. Use a parcel price of $100.

    I got $102.64 for my answer. Does this seem right....

    Has anyone else got the answer to this.

    Any help would be appreciated.
     
  2. clawzy

    clawzy New Member

    Joined:
    18th Jul, 2009
    Posts:
    2
    Location:
    Melbourne
    Yep...looks good Scotty.
     
  3. balmy nights

    balmy nights Member

    Joined:
    12th Mar, 2010
    Posts:
    13
    Location:
    wa
    really struggling with this question myself,

    can anyone tell me what formula is used or at least where in the kaplan book I can find it.

    Many thanks
     
  4. stav

    stav Member

    Joined:
    22nd Jul, 2010
    Posts:
    23
    Location:
    Adelaide
    hey i just posted something in the thread 'Kaplan Investment Planning' with the formula....

    you may want to look at the RG146 (PS146) Study Group and the thread 'Investment Planning - Government Bond'- the correct figures are used in that calculation....