Tamara David Gordan Final Project

  • View
    219

  • Download
    0

Embed Size (px)

Text of Tamara David Gordan Final Project

  • 8/6/2019 Tamara David Gordan Final Project

    1/40

    LOAN AMORTIZATION SCHEDULE

    6.90%Annual interest rate compounded monthly

    60 Number of monthly payments

    29140Amount of Loan

    $575.63Payment Amount

    fter the 5th payment, remaining balance owed is $27,076.0

    Payment # Payment Principal Interest Balance

    29140

    1 $575.63 $408.08 $167.56 $28,731.93

    2 $575.63 $410.42 $165.21 $28,321.50

    3 $575.63 $412.78 $162.85 $27,908.72

    4 $575.63 $415.15 $160.48 $27,493.57

    5 $575.63 $417.54 $158.09 $27,076.03

    6 $575.63 $419.94 $155.69 $26,656.08

    7 $575.63 $422.36 $153.27 $26,233.72

    8 $575.63 $424.79 $150.84 $25,808.94

    9 $575.63 $427.23 $148.40 $25,381.71

    10 $575.63 $429.69 $145.94 $24,952.03

    11 $575.63 $432.16 $143.47 $24,519.87

    12 $575.63 $434.64 $140.99 $24,085.23

    13 $575.63 $437.14 $138.49 $23,648.09

    14 $575.63 $439.65 $135.98 $23,208.44

    15 $575.63 $442.18 $133.45 $22,766.25

    16 $575.63 $444.72 $130.91 $22,321.53

    17 $575.63 $447.28 $128.35 $21,874.2518 $575.63 $449.85 $125.78 $21,424.40

    19 $575.63 $452.44 $123.19 $20,971.96

    20 $575.63 $455.04 $120.59 $20,516.91

    21 $575.63 $457.66 $117.97 $20,059.26

    22 $575.63 $460.29 $115.34 $19,598.97

    23 $575.63 $462.94 $112.69 $19,136.03

    24 $575.63 $465.60 $110.03 $18,670.43

    25 $575.63 $468.28 $107.35 $18,202.16

    26 $575.63 $470.97 $104.66 $17,731.19

    27 $575.63 $473.68 $101.95 $17,257.5228 $575.63 $476.40 $99.23 $16,781.12

    29 $575.63 $479.14 $96.49 $16,301.98

    30 $575.63 $481.89 $93.74 $15,820.08

    31 $575.63 $484.66 $90.97 $15,335.42

    32 $575.63 $487.45 $88.18 $14,847.97

    33 $575.63 $490.25 $85.38 $14,357.71

    34 $575.63 $493.07 $82.56 $13,864.64

    35 $575.63 $495.91 $79.72 $13,368.73

  • 8/6/2019 Tamara David Gordan Final Project

    2/40

    36 $575.63 $498.76 $76.87 $12,869.97

    37 $575.63 $501.63 $74.00 $12,368.34

    38 $575.63 $504.51 $71.12 $11,863.83

    39 $575.63 $507.41 $68.22 $11,356.42

    40 $575.63 $510.33 $65.30 $10,846.09

    41 $575.63 $513.26 $62.37 $10,332.82

    42 $575.63 $516.22 $59.41 $9,816.61

    43 $575.63 $519.18 $56.45 $9,297.4244 $575.63 $522.17 $53.46 $8,775.25

    45 $575.63 $525.17 $50.46 $8,250.08

    46 $575.63 $528.19 $47.44 $7,721.89

    47 $575.63 $531.23 $44.40 $7,190.66

    48 $575.63 $534.28 $41.35 $6,656.38

    49 $575.63 $537.36 $38.27 $6,119.02

    50 $575.63 $540.45 $35.18 $5,578.58

    51 $575.63 $543.55 $32.08 $5,035.02

    52 $575.63 $546.68 $28.95 $4,488.34

    53 $575.63 $549.82 $25.81 $3,938.5254 $575.63 $552.98 $22.65 $3,385.54

    55 $575.63 $556.16 $19.47 $2,829.37

    56 $575.63 $559.36 $16.27 $2,270.01

    57 $575.63 $562.58 $13.05 $1,707.44

    58 $575.63 $565.81 $9.82 $1,141.62

    59 $575.63 $569.07 $6.56 $572.56

    60 $575.63 $572.34 $3.29 $0.22

  • 8/6/2019 Tamara David Gordan Final Project

    3/40

    Main formula for bond price Bond price from today untill mat

    FV $1,000 Years to Maturity (N) Price of Bond (PV)

    Coupon Rate 7.875% 19 $674.68

    YTM 12.40% 18 $679.59

    Years to Maturity 19 17 $685.10

    Payment Freq 1 16 $691.31

    15 $698.28PV(price) of bon $674.68 14 $706.12

    13 $714.92

    Formula used for bond price calc 12 $724.82

    11 $735.95

    10 $748.46

    9 $762.52

    8 $778.32

    7 $796.08

    6 $816.05

    5 $838.49

    4 $863.71

    3 $892.06

    2 $923.93

    1 $959.74

    0 $1,000.00

    Question clearly indicated topresent the price of the bond,i.e. one bond with face value of1,000$, thus we calculated prices

    and yields per 1 bond of themany they issued.

  • 8/6/2019 Tamara David Gordan Final Project

    4/40

    aphical representation of bond prices over time to matuirty (19-

    19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0600

    650

    700

    750

    800

    850

    900

    950

    1000

    Bond Price Over Time to Maturity

    Price of Bond(PV)

  • 8/6/2019 Tamara David Gordan Final Project

    5/40

    SP500 AVERAGE RETURNSDate Open High Low Close Volume dj Close

    6/1/2011 1345.2 1345.2 1313.71 1314.55 ### 1314.55

    5/2/2011 1365.21 1370.58 1311.8 1345.2 ### 1345.2

    4/1/2011 1329.48 1364.56 1294.7 1363.61 ### 1363.61

    3/1/2011 1328.64 1332.28 1249.05 1325.83 ### 1325.83

    2/1/2011 1289.14 1344.07 1289.14 1327.22 ### 1327.221/3/2011 1257.62 1302.67 1257.62 1286.12 ### 1286.12

    12/1/2010 1186.6 1262.6 1186.6 1257.64 ### 1257.64

    11/1/2010 1185.71 1227.08 1173 1180.55 ### 1180.55

    10/1/2010 1143.49 1196.14 1131.87 1183.26 ### 1183.26

    9/1/2010 1049.72 1157.16 1049.72 1141.2 ### 1141.2

    8/2/2010 1107.53 1129.24 1039.7 1049.33 ### 1049.33

    7/1/2010 1031.1 1120.95 1010.91 1101.6 ### 1101.6

    6/1/2010 1087.3 1131.23 1028.33 1030.71 ### 1030.71

    5/3/2010 1188.58 1205.13 1040.78 1089.41 ### 1089.41

    4/1/2010 1171.23 1219.8 1170.69 1186.69 ### 1186.69

    3/1/2010 1105.36 1180.69 1105.36 1169.43 ### 1169.43

    2/1/2010 1073.89 1112.42 1044.5 1104.49 ### 1104.49

    1/4/2010 1116.56 1150.45 1071.59 1073.87 ### 1073.87

    12/1/2009 1098.89 1130.38 1085.89 1115.1 ### 1115.1

    11/2/2009 1036.18 1113.69 1029.38 1095.63 ### 1095.63

    10/1/2009 1054.91 1101.36 1019.95 1036.19 ### 1036.19

    9/1/2009 1019.52 1080.15 991.97 1057.08 ### 1057.08

    8/3/2009 990.22 1039.47 978.51 1020.62 ### 1020.62

    7/1/2009 920.82 996.68 869.32 987.48 ### 987.48

    6/1/2009 923.26 956.23 888.86 919.32 ### 919.32

    5/1/2009 872.74 930.17 866.1 919.14 ### 919.144/1/2009 793.59 888.7 783.32 872.81 ### 872.81

    3/2/2009 729.57 832.98 666.79 797.87 ### 797.87

    2/2/2009 823.09 875.01 734.52 735.09 ### 735.09

    1/2/2009 902.99 943.85 804.3 825.88 ### 825.88

    12/1/2008 888.61 918.85 815.69 903.25 ### 903.25

    11/3/2008 968.67 1007.51 741.02 896.24 ### 896.24

    10/1/2008 1164.17 1167.03 839.8 968.75 ### 968.75

    9/2/2008 1287.83 1303.04 1106.42 1166.36 ### 1166.36

    8/1/2008 1269.42 1313.15 1247.45 1282.83 ### 1282.83

    7/1/2008 1276.69 1292.17 1200.44 1267.38 ### 1267.386/2/2008 1399.62 1404.05 1272 1280 ### 1280

    5/1/2008 1385.97 1440.24 1373.07 1400.38 ### 1400.38

    4/1/2008 1326.41 1404.57 1324.35 1385.59 ### 1385.59

    3/3/2008 1330.45 1359.68 1256.98 1322.7 ### 1322.7

    2/1/2008 1378.6 1396.02 1316.75 1330.63 ### 1330.63

    1/2/2008 1467.97 1471.77 1270.05 1378.55 ### 1378.55

    12/3/2007 1479.63 1523.57 1435.65 1468.36 ### 1468.36

    11/1/2007 1545.79 1545.79 1406.1 1481.14 ### 1481.14

  • 8/6/2019 Tamara David Gordan Final Project

    6/40

    10/1/2007 1527.29 1576.09 1489.56 1549.38 ### 1549.38

    9/4/2007 1473.96 1538.74 1439.29 1526.75 ### 1526.75

    8/1/2007 1455.18 1503.89 1370.6 1473.99 ### 1473.99

    7/2/2007 1504.66 1555.9 1454.25 1455.27 ### 1455.27

    6/1/2007 1530.62 1540.56 1484.18 1503.35 ### 1503.35

    5/1/2007 1482.37 1535.56 1476.7 1530.62 ### 1530.62

    4/2/2007 1420.83 1498.02 1416.37 1482.37 ### 1482.37

    3/1/2007 1406.8 1438.89 1363.98 1420.86 ### 1420.862/1/2007 1437.9 1461.57 1389.42 1406.82 ### 1406.82

    1/3/2007 1418.03 1441.61 1403.97 1438.24 ### 1438.24

    12/1/2006 1400.63 1431.81 1385.93 1418.3 ### 1418.3

    11/1/2006 1377.76 1407.89 1360.98 1400.63 ### 1400.63

    10/2/2006 1335.82 1389.45 1327.1 1377.94 ### 1377.94

    9/1/2006 1303.8 1340.28 1290.93 1335.85 ### 1335.85

    8/1/2006 1278.53 1306.74 1261.3 1303.82 ### 1303.82

    7/3/2006 1270.06 1280.42 1224.54 1276.66 ### 1276.66

    6/1/2006 1270.05 1290.68 1219.29 1270.2 ### 1270.2

    5/1/2006 1310.61 1326.7 1245.34 1270.09 ### 1270.094/3/2006 1302.88 1318.16 1280.74 1310.61 ### 1310.61

    3/1/2006 1280.66 1310.88 1268.42 1294.87 ### 1294.87

    2/1/2006 1280.08 1297.57 1253.61 1280.66 ### 1280.66

    1/3/2006 1248.29 1294.9 1245.74 1280.08 ### 1280.08

    12/1/2005 1249.48 1275.8 1246.59 1248.29 ### 1248.29

    11/1/2005 1207.01 1270.64 1201.07 1249.48 ### 1249.48

    10/3/2005 1228.81 1233.34 1168.2 1207.01 ### 1207.01

    9/1/2005 1220.33 1243.13 1205.35 1228.81 ### 1228.81

    8/1/2005 1234.18 1245.86 1201.07 1220.33 ### 1220.33

    7/1/2005 1191.33 1245.15 1183.55 1234.18 ### 1234.186/1/2005 1191.5 1219.59 1188.3 1191.33 ### 1191.33

    5/2/2005 1156.85 1199.56 1146.18 1191.5 ### 1191.5

    4/1/2005 1180.59 1191.88 1136.15 1156.85 ### 1156.85

    3/1/2005 1203.6 1229.11 1163.69 1180.59 ### 1180.59

    2/1/2005 1181.27 1212.44 1180.95 1203.6 ### 1203.6

    1/3/2005 1211.92 1217.8 1163.75 1181.27 ### 1181.27

    12/1/2004 1173.78 1217.33 1173.78 1211.92 ### 1211.92

    11/1/2004 1130.2 1188.46 1127.6 1173.82 ### 1173.82

    10/1/2004 1114.58 1142.05 1090.29 1130.2 ### 1130.2

    9/1/2004 1104.24 1131.54 1099.18 1114.58 ### 1114.58

    8/2/2004 1101.72 1109.68 1060.72 1104.24 ### 1104.24

    7/1/2004 1140.84 1140.84 1078.78 1101.72 ### 1101.72

    6/1/2004 1120.68 1146.34 1113.32 1140.84 ### 1140.84

    5/3/2004 1107.3 1127.74 1076.32 1120.68 ### 1120.68

    4/1/2004 1126.21 1150.57 1107.23 1107.3 ### 1107.3

    3/1/2004 1144.94 1163.23 1087.16 1126.21 ### 1126.21

    2/2/2004 1131.13 1158.98 1124.44 1144.94 ### 1144.94

    1/2/2004 1111.92 1155.38 1105.08 1131.13 ### 1131.13

    12/1/2003 1058.2 1112.56 1053.41 1111.92 ### 1111.92

  • 8/6/2019 Tamara David Gordan Final Project

    7/40

    11/3/2003 1050.71 1063.65 1031.2 1058.2 ### 1058.2