On the 5th of March 2009, the Bank of England (BoE) lowered its main interest rate to 0.5%, the lowest on record since the Bank has published rates in 1970, which still remains unchanged. As a consequence of this low level of rates, HSBC’s Lifetime Tra

This coursework tests your basic financial mathematics and statistical modelling skills, 

using spreadsheet software (Excel – formulae, financial maths, graphical features, Data 

Analysis and Solver tools) as well as your awareness of the reality of how financial 

products work. Your answers are to be presented in an essay/report format, for which 

you will use a word processor. In writing your report, please: 

 state and explain all assumptions, on which your answers are based; 

 clearly indicate your answer/recommendations

 support any answers with the appropriate calculations to arrive at the answer

 include selected printouts of formulae underlying computed values. Despite the 

fact that you will be submitting the Excel file as well, your report is a stand-alone 

document, meaning a reader should not be required to look at the Excel file to 

understand your analysis, findings and recommendations

 please note that adequate usage of the excel calculations in the report is 

important. This means that the key data/findings needs to be included in the 

report and appropriate referencing needs to be done, i.e. the relevant 

cell/table/range in the relevant tab of the excel file mentioned at the point of the 

report when it should be consulted.

The report will have a maximum of 10 pages (including any Appendixes; penalties will 

be applied for longer submissions – you are required to develop your judgement on what 

is and isn’t important). Ten percent of the total mark is allowed for quality of the 

presentation and these marks are distributed among the questions.