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.

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