VBA Programming homework:
1. A cosine can be approximated by the following infinite series:
cosx=1-(x2/2!)+(x4/4!)-(x6/6!)+...
Write a function that will calculate this for any x and y number of terms. If y > 85 or y is not a positive integer, return an error.
|
X
|
Y
|
Cos( x)
|
MyCosine (x,y)
|
Approximation error
|
|
0.31831
|
9
|
|
|
|
|
0.95493
|
9.5
|
|
|
|
|
1.27324
|
37
|
|
|
|
|
1.591549
|
65
|
|
|
|
|
2.228169
|
88
|
|
|
|
2. A hybrid linked note is an instrument that provides investors fixed income and equity market. It is structured by combining a return that is 75% equity and 25% fixed income. The investment pays the greater of the par value, $1,000, or the price times the 75% percentage increase in the S&P 500 plus 25% the return on the Barclays US Aggregate Index.
Write 2 functions (hlnPayoff, hlnReturn). The first, hlnPayoff, calculates the security payoff at maturity. The second, hlnReturn, calculates the annualized return assuming continuous compounding. The function hlnReturn should call the payoff function.
|
Price
|
Years
|
SP5000
|
SP5001
|
Barclay US Agg0
|
Barclay US Agg1
|
Payoff
|
Return
|
|
953
|
1
|
1783
|
1995
|
1810
|
1887
|
|
|
|
914
|
2
|
1298
|
1498
|
1909
|
1942
|
|
|
|
811
|
5
|
1288
|
1568
|
1710
|
1887
|
|
|
|
733
|
8
|
1335
|
1270
|
1612
|
1923
|
|
|