Assignment Part A requirements
You must provide a full answer with explanation and accompanied with the calculation done manually and in Excel. See the example below.
- Manual answer as if you were answering the question in an exam (but typed). Include a time line or cash flow map/table, an explanation of the logic used to arrive at the answer, the formula used and then the calculations. The formula on its own followed by the answer is not enough. Assignment Part A requirements.
- You must also do the solution in Excel. You can embed your excel file in your word document. See the excel file embedded below. Click on the excel icon to see the example in Excel. The calculation must be done in excel. Typing the answer as a number into excel is not enough. Assignment Part A requirements.
You have three options:
- Do all the assignment with explanations in excel and upload one file. Type your explanation and manual answer in text boxes. This is the preferred method.
- Do the assignment in two files, one Word document and one Excel document. Then upload both documents.
- Do the assignment producing two files one word document and one excel document. Embed the excel file into the word document and upload one file. Assignment Part A requirements.
Number one is the preferred option.
EXAMPLE OF HOW TO SET OUT YOUR ANSWERS
Question: 90 Day Bank Bill
Polycorp is about to issue a 90 day bank bill with a face value of $100,000. If the published yield is 8% pa at what price can the bill be issued?
Cash Flow Map
PV FV = 100000
Yield is 8%pa, by convention this is annual nominal. The face value is 100,000 and will be paid in ninety days. The price is given by the present value using the Assignment Part A requirementsbank bill formula.
Price = PV = =
PV = present value = price (unknown)
FV = future value = face value = 100000 in this case
i = market rate for 90 days = we need to calculate this by converting the .08 to a daily rate (divide by 365) and then converting this to a 90 day rate (multiply by 90).
t = days to maturity
365 is the number of days in a year
PV = 100000/(1+.08*90/365) = 98065.56
To embed your excel file into a word document.
Finish and save your excel file. Make sure it is closed.
Click the create from file tab
Make sure to tick the “display as icon” box
Browse to find your excel file