Question 3 marking guide (16marks) Part a (2 marks) Note: the…

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Question Answered step-by-step Question 3 marking guide (16marks) Part a (2 marks) Note: the… Image transcription textJ2 18-67. 100 3 4 v 8/may 2020 a ) Accum coupons @) 14y 7.5 0.14 ZA = 128 0 3 3 Thus total value a maturity :100 +128 03 3 : 228033 b ) TRCY NB )2 18.6 : 9 3x. P. : 100 1 + 9 . 3% : 58. 97 6 7.5 / 6 0 9.3 : 33. 3 46 Po = 92.32 TRCX = EOV 92:32 = 228 033 – :1 = 162%. 52 : 32. Liqy . Q3 C original purchase price : 92. 32 … Show more… Show moreQuestion 3 marking guide (16 marks) Part a (2 marks) Note: the solution, unfortunately, has omitted to add the $100 face value to A; the correct accumulated value at maturity is $153.65.Give 1½ a marks for the correct methodology (reduce as appropriate).Give ½ a mark for the correct answer (153.65).So, my answer of 53.65 would only get one mark (lose ½ a mark for omitting to add 100, and lose ½ a mark for not getting the correct result).Part b (2 marks) Give 1½ marks for using the correct methodology to calculate the TRCY (reducing appropriately for errors and omissions).Give ½ a mark for correct TRCY.Part c (2 marks) Give ½ a mark for each correct response, to a maximum of 2.Part d (2 marks) Give 1½ marks for using the correct methodology to calculate the HPY (reducing appropriately for errors and omissions).Give ½ a mark for correct HPY.Part e (2 marks) Give 1½ marks for using the correct methodology to calculate the duration (reducing appropriately for errors and omissions).Give ½ a mark for correct duration.Part f (3 marks) Give 2½ marks for using the correct methodology to calculate the duration (reducing appropriately for errors and omissions).Give ½ a mark for correct duration.Part g (3 marks) For the ‘fixed liability’ part.Give 1½ marks for using the correct methodology to calculate the fixed liability that can be hedged (reducing appropriately for errors and omissions).Give ½ a mark for correctly calculating the amount the fixed liability that can be hedged.For the answer to the question ‘why’, give, either1 mark for a correct and strong answer, OR½ a mark for a correct, but weak, answer, ORzero, otherwise.Which marking vector is most appropriate? (The order of the numbers in the sum follows the order of the questions.)a.1+1½+1½+½+1½+2½+2=10½  b.1+1½+1½+1+1½+2½+2=11  c.1+1½+1½+½+1½+0+0=6  d.1+1½+1½+½+1½+½+½=7  e.1+1½+1½+½+1½+2½+2½=11  f.1+1½+1½+½+1½+2+1½=9½  g.1½+1½+1½+½+1½+1½+1½=9½  h.1+1½+1½+½+1½+1+½=7½  i.1+1½+1½+½+1½+1½+1=8½  j.None of the other answers    Business Finance ACST 201 Share QuestionEmailCopy link Comments (0)