504 Words3 Pages

Say you own an asset that had a total return last year of 17 percent. If the inflation rate last year was 5 percent, what was your real return? |
| 11.33% | | -10.26% | | 11.53% | | 11.63% | | 11.43% |
-------------------------------------------------
Top of Form Grohl Co. issued 7-year bonds a year ago at a coupon rate of 11 percent. The bonds make semiannual payments. If the YTM on these bonds is 6 percent, what is the current bond price? | | $1,160.76 | | $1,248.85 | | $1,302.62 | | $742.83 | | $1,258.85 | Ashes Divide Corporation has bonds on the market with 19 years to maturity, a YTM of 7.8 percent, and a current price of $1,206.50. The bonds make semiannual payments. What must the coupon*…show more content…*

The bonds make annual payments. If the YTM on these bonds is 6 percent, the current bond price is $ . (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16)) You purchase a bond with a coupon rate of 7.7 percent and a clean price of $1,030. If the next semiannual coupon payment is due in two months, what is the invoice price? | | $1,019.67 | | $1,045.33 | | $1,055.67 | | $1,101.24*…show more content…*

At this price, the bonds yield 11.8 percent. The coupon rate on the bonds is percent. (Do not include the percent sign (%). Round your answer to 1 decimal place. (e.g., 32.1)) | Ackerman Co. has 10 percent coupon bonds on the market with sixteen years left to maturity. The bonds make annual payments. If the bond currently sells for $944, the YTM is percent. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16)) | Ngata Corp. issued 12-year bonds 2 years ago at a coupon rate of 9.6 percent. The bonds make semiannual payments. If these bonds currently sell for 99 percent of par value, what is the YTM? | | 8.78% | | 10.73% | | 11.71% | | 9.76% | | 4.88% | Redesigned Computers has 10 percent coupon bonds outstanding with a current market price of $910.00. The yield to maturity is 11.34 percent and the face value is $1,000. Interest is paid semiannually. How many years is it until this bond matures? | 12 years | | 13 years | | 15 years | | 21 years | | 14 years

The bonds make annual payments. If the YTM on these bonds is 6 percent, the current bond price is $ . (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16)) You purchase a bond with a coupon rate of 7.7 percent and a clean price of $1,030. If the next semiannual coupon payment is due in two months, what is the invoice price? | | $1,019.67 | | $1,045.33 | | $1,055.67 | | $1,101.24

At this price, the bonds yield 11.8 percent. The coupon rate on the bonds is percent. (Do not include the percent sign (%). Round your answer to 1 decimal place. (e.g., 32.1)) | Ackerman Co. has 10 percent coupon bonds on the market with sixteen years left to maturity. The bonds make annual payments. If the bond currently sells for $944, the YTM is percent. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16)) | Ngata Corp. issued 12-year bonds 2 years ago at a coupon rate of 9.6 percent. The bonds make semiannual payments. If these bonds currently sell for 99 percent of par value, what is the YTM? | | 8.78% | | 10.73% | | 11.71% | | 9.76% | | 4.88% | Redesigned Computers has 10 percent coupon bonds outstanding with a current market price of $910.00. The yield to maturity is 11.34 percent and the face value is $1,000. Interest is paid semiannually. How many years is it until this bond matures? | 12 years | | 13 years | | 15 years | | 21 years | | 14 years

Related

## Fin 515 Week 3

714 Words | 3 Pages80*7.1607+1000*.3555 = $928 • 5-2 Yield to Maturity for Annual payments Wilson Wonders’s bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 10%. The bonds sell at a price of $850. What is their yield to maturity? 100+1000-850/12/1000+850/2 = 112.5/925 = .1216 or 12.16% • 5-6 Maturity Risk Premium The real risk-free rate is 3%, and inflation is expected to be 3% for the next 2 years.

## Chapter 13 1. a $1,000 Bond Has a Coupon of 6 Percent and Matures After 10 Years.

1557 Words | 7 Pages8% b. 8% 2. a. A $1,000 bond has a 7.5 percent coupon and matures after 10 years. If current interest rates are 10 percent, what should be the price of the bond? Price = $1,000 x 0.3855 + $1,000 x 7.5% x 6.1446 Price = $385.50 + $460.85 Price = $846.35 b.

## Accounting Essay

964 Words | 4 PagesWhat would be the second year future value? (LG4-3) FV = 750 × (1 + 0.10) (1 + 0.12) 750 × 1.10 × 1.12 Answer: 924.00 4-11 Present Value What is the present value of a $1,500 payment made in six years when the discount rate is 8 percent? (LG4-4) PV = 1500/(1+0.08)6 1500/1.586874323 Answer: 945.25 4-13 Present Value with Different Discount Rates Compute the present value of $1,000 paid in three years using the following discount rates: 6 percent in the first year, 7 percent in the second year, and 8 percent in the third year. (LG4-4) PV = 1000 / ((1 + 0.06) (1 +0.07) (1 + 0.08)) 1000/ (1.06 × 1.07 × 1.08) 1000/1.224936 Answer: 816.37 4-16 Rule of 72 Approximately how many years are needed to double a $500 investment when interest rates are 10 percent per year? (LG4-6) N=72 / 10 Answer: 7.2 4-31 Solving for Time How many years (and months) will it take $2 million to grow to $5 million with an annual interest rate of 7 percent?

## Text Problem Sets and Concept and Principles Summary Fin571, Uop, Week 2

2067 Words | 9 PagesText Problem Sets and Concept and Principles Summary FIN 571 Text Problem Sets and Concept and Principles Summary Problem A3: (Bond valuation) General Electric made a coupon payment yesterday on its 6.75% bonds that mature in 8.5 years. If the required return on these bonds is 8% APR, what should be the market price of these bonds? PMT -33.75 FV -1000 N 17 Rate 4% Market Price $923.96 Fair Value of a bond = C/r*(1-1/(1+r)^n)+M/(1+r)^n Assuming that it’s a semi-annual bond with face value of $1000 A13. (Required return for a preferred stock) Sony $4.50 preferred is selling for $65.50. The preferred dividend is non-growing.

## Financial Math Review

674 Words | 3 PagesIf it is compounded continuosly? Explain the results. Annual: PV = -2000, I/YR = 6; N = 10; solve for FV = $3581.70 Quarterly: I/YR = 6/4 = 1.5; N = 10*4 = 40; solve for FV = $3628.04 Continuously: -2000*(e**.06**10) = $3,644.24 FV increases with the number of compounding periods Question 1b What will be the total accumulated amount at the end of 10 years if in addition to the initial $2,000, you also deposit $4,000 in year 4 and $8,000 in year 8? Assume an annual 6% interest rate for all ten years. First cash flow: FV = 3581.70 (already done) Second cash flow: PV = -4000, N = 6, I/YR = 6, solve for FV = 5674.08 Third cash flow: PV = -8000, N=2, I/YR = 6; solve for FV = 8988.80 ANSWER: 3581.70+5674.08+8988.80 = $18,244.58 Question 1c Using the information from Question 1b, what will be the total accumulated value at the end of 10 years, if the interest rate is expected to be 6% for only the first three years, followed by 8% for the next five years, and 10% thereafter?

## Isbm - Corporate Finance

538 Words | 3 PagesWE PROVIDE CASE STUDY ANSWERS, ASSIGNMENT SOLUTIONS, PROJECT REPORTS AND THESIS aravind.banakar@gmail.com ARAVIND - 09901366442 – 09902787224 CORPORATE FINANCE CASE STUDY : 1 Reliance company has a $ 1,000 face value convertible bond issue that is currently selling in the market for $ 950. Each bond is exchangeable at any time for 25 shares of the company’s stock. The convertible bond has a 7 percent coupon. Payable semi-annually. Similar non-convertible bonds are priced to yield 10 percent.

## Homework 35 Essay

508 Words | 3 PagesShould the company purchase the small technology firm? Use an interest rate of 12%. What is the “breakeven price” of the small technology firm? (Points : 10)\ 2. A bond has a par value of $100,000 and pays interest revenues of $5,000 per year.

## Fin331 Essay

6553 Words | 27 Pages$80, 8% c. $60, 10% d. $80, 10% e. $100, 10% Answer: e V0 = D/k = 8/0.08 = $100. ROI = (80+8)/80 = 10% 5. I checked the Microsoft stock price at 9:12am this morning. It was $24.88. The last 12 month trailing (ttm) net earnings is $14.58 billion with 9 billion shares.

## Acquisition of Trucks Acc 550 E 10-3

384 Words | 2 PagesThe note is due April 1, 2013. Shabbona would normally have to pay interest at a rate of 10% for such a borrowing, and the dealership has an incremental borrowing rate of 8%. ** Truck #3 has a list price of $16,000. It is acquired in exchange for a computer system that Shabbona carries in inventory. The computer system cost $12,000 and is normally sold by Shabbona for $15,200.

## Fra Rates & Bond Hedging

771 Words | 4 PagesYou want to hedge a medium-term Treasury portfolio that has a Macauley duration of 4.0 years. A T-bond futures contract has a notional value = $100,000. The yield to maturity on the CTD bond and on the portfolio are both 9.50 percent (9.50%). Your portfolio has a market value equal to $120 million and the decimal equivalent T-bond futures price is equal to 68.91. For simplicity’s sake assume the conversion factor of the CTD Bond = 1.0000 and the that the relative yield change = 1.00.

### Fin 515 Week 3

714 Words | 3 Pages### Chapter 13 1. a $1,000 Bond Has a Coupon of 6 Percent and Matures After 10 Years.

1557 Words | 7 Pages### Accounting Essay

964 Words | 4 Pages### Text Problem Sets and Concept and Principles Summary Fin571, Uop, Week 2

2067 Words | 9 Pages### Financial Math Review

674 Words | 3 Pages### Isbm - Corporate Finance

538 Words | 3 Pages### Homework 35 Essay

508 Words | 3 Pages### Fin331 Essay

6553 Words | 27 Pages### Acquisition of Trucks Acc 550 E 10-3

384 Words | 2 Pages### Fra Rates & Bond Hedging

771 Words | 4 Pages