Midterm Exam

Please note that you have four hours to complete this exam.

There are 15 multiple choice questions. Each question is worth two points. There is only one correct answer for each question. Please choose the best answer. The multiple choice questions should be completed entirely online. You do not need to show any work for these questions. 

There are seven problems. You must show your work (including formulas with the numbers inserted) and your final answers to receive full credit on these problems. Each problem is worth 10 points and partial credit will be given where applicable. You will need to answer each problem on a piece of paper, scan it into a PDF document and upload it to Canvas. It is also permissible to answer each question on a Word Document. Please upload your solution for each problem as a separate document (separate uploads to Canvas for each problem). Do not upload a spreadsheet.

All bonds with coupon payments pay their interest semiannually.
Assume all other cash flows are annual and come at the end of the year unless the problem states otherwise. 
Assume that compounding occurs when the cash flows are received (i.e. monthly cash flows means monthly compounding) unless the problem states otherwise.
All dollar and interest rates are expressed in nominal values unless the problem states otherwise. If a problem doesn't mention nominal or real or purchasing power or inflation, it does not involve inflation.

You may use a calculator, excel, your textbook, any notes you took during this course, and any material I have provided to you (including anything on our Canvas site). If you use excel, you must start with a blank spreadsheet. While taking this exam, you may not refer to any materials other than what I mentioned above. You may not go to any website other than the Canvas site for this course while you are taking this exam. You may not discuss this exam with anyone until after I have returned it to you. 

Carry out your final answers to the nearest cent (for monetary answers) or basis point (for percentage answers). A basis point is one one-hundredth of one percent. Carry out all workings within a problem either in excel or your calculator and use cell referencing whenever possible.

Some questions and problems may contain more information than is needed to solve them. You have four hours to complete this test. That includes uploading your solutions. I will have your exams graded and returned to you as soon as possible. 

If you have any questions during the exam, you can send me an email at wreese@ou.edu , but I 'can't promise that I will see it while you are still taking the exam. 

Good Luck!