Santa Cruz Institute (Marinduque) Inc.

Santa Cruz, Marinduque

Name: ____________________________ Date: ___________

Year/Course/Major: _________________ Score: __________

INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT

Activity

1. Compute the difference in the future amount of P1000 compounded annually at

nominal rate of 6% and if it is compounded continuously for 3 years at the same
rate. (10 pts)

2. If the inflation rate is 5%, and the nominal interest is 12%, what is the real
interest? (5pts)

3. Calculate the value of a 23-year bond with face value of Php 10,000 and coupon
rate being 7% paid annually. Assume that the discount rate is 10%. (10 pts)