A two year Government bond has a face value of $100, a yield of 0.5% and a fixed coupon rate of 0.5%, paid semi-annually. What is its price?

**Question 218** NPV, IRR, profitability index, average accounting return

Which of the following statements is **NOT** correct?

You're considering making an investment in a particular company. They have preference shares, ordinary shares, senior debt and junior debt.

Which is the safest investment? Which will give the highest returns?

A share was bought for $4 and paid an dividend of $0.50 one year later (at t=1 year).

Just after the dividend was paid, the share price fell to $3.50 (at t=1 year). What were the total return, capital return and income returns given as effective annual rates? The answer choices are given in the same order:

##r_\text{total}##, ##r_\text{capital}##, ## r_\text{income}##

Which of the below formulas gives the profit ##(\pi)## from being **long** a **put** option? Let the underlying asset price at maturity be ##S_T##, the exercise price be ##X_T## and the option price be ##f_{LP,0}##. Note that ##S_T##, ##X_T## and ##f_{LP,0}## are all positive numbers.

Which of the below formulas gives the profit ##(\pi)## from being **short** a **put** option? Let the underlying asset price at maturity be ##S_T##, the exercise price be ##X_T## and the option price be ##f_{LP,0}##. Note that ##S_T##, ##X_T## and ##f_{LP,0}## are all positive numbers.

**Question 743** price gains and returns over time, no explanation

How many years will it take for an asset's price to **triple** (increase from say $1 to $3) if it grows by **5**% pa?

Calculate Australia’s GDP over the 2016 calendar year using the below table:

Australian Gross Domestic Product Components |
||||

A$ billion, 2016 Calendar Year from 1 Jan 2016 to 31 Dec 2016 inclusive | ||||

Consumption | Investment | Government spending | Exports | Imports |

971 | 421 | 320 | 328 | 344 |

Source: ABS 5206.0 Australian National Accounts: National Income, Expenditure and Product. Table 3. Expenditure on Gross Domestic Product (GDP), Current prices.

Australia’s GDP was: