6 Compound Interest – Applications & Single Payments
Learning Objectives
- Calculate the interest payment for an interest payout GIC.
- Calculate the maturity value of a fixed rate GIC.
- Calculate the maturity value of a variable rate GIC.
- Calculating the proceeds (selling price) of an interest-bearing promissory note.
- Calculating the proceeds (selling price) of a non-interest-bearing promissory note.
- Calculating the price of a strip bond.
- Calculating the nominal yield of a strip bond.