+1-415-315-9853

info@mywordsolution.com

Finance

 Basic Finance Corporate Finance Financial Management Financial Econometrics Portfolio Management Risk Management Public Finance Business Law & Ethics

1) A 20-year bond with par value of \$1,000 has the 9 percent annual coupon. Bond presently sells for \$925. If bond's yield to maturity remains at its present rate, find the price of bond 5 years from now?

i) \$ 966.79
ii) \$ 831.35
iii) \$1,090.00
iv) \$ 933.09
v) \$ 925.00

2) You might have heard of zero coupon bonds i.e. zero-coupon bonds pay their owners \$1,000 at maturity and engage no other cash flows other than purchase price. If you purchased the zero coupon bond for \$300, held bond for 10 years, and then cashed it in for \$1,000 at the ending of 10th year, determine the average annual rate of return that would you realize on your investment?

i) 1.28%
ii) 12.79%
iii) 113%
iv) 30%
v) 233%

3) In a newspaper one of Microsoft's bonds is given as follows: Microsoft 7 30 According to this listing:

i) Bond was issued on July 30 (7/30).
ii) Bond matures in seven years and its yield if held to maturity is 30%.
iii) Coupon interest rate for this bond is 7% and it matures in 2030.
iv) Yield to maturity for this bond is 7% and it matures in 30 years.

Basic Finance, Finance

• Category:- Basic Finance
• Reference No.:- M914146

Have any Question?

Related Questions in Basic Finance

You have just performed a scenario analysis on a project

You have just performed a scenario analysis on a project, with the following results: Best Case: with a 35% probability, you get an NPV of \$77 Base Case: with a 55% probability, you get an NPV of \$24 Worst Case: with a 1 ...

Find two variables that you think should be either

Find two variables that you think should be either positively or negatively correlated. Measure these two variables in a sample of participants (for instance, your classmates). Calculate the Pearson correlation coefficie ...

1 why is cindy fratelli unprepared to play an ihr role2 how

1. Why is Cindy Fratelli unprepared to play an IHR role? 2. How can she prepare herself? 3. What areas of IHR will Cindy need to learn?

Suppose chapman corporation is planning to pay a 2 per

Suppose Chapman Corporation is planning to pay a \$2 per share dividend to its common stockholders. If the common stock price after the ex-dividend date is \$50, what was the stock price before the ex-dividend date? \$50 \$5 ...

Suppose a research conducts a two-factor study comparing

Suppose a research conducts a two-factor study comparing two treatments (I and II) for males versus females. The structure of the study is shown in the following matrix. Treatment I II Female Male a. If the results show ...

1 behavioral measures frequently have the advantage of

1. Behavioral measures frequently have the advantage of reducing participant reactivity. Since they can capture the behavior of individuals more honestly, why are they so infrequently used in behavioral research? 2. Cons ...

Accountingthe analysis of changes in cash for a

Accounting The analysis of changes in cash for a consolidated entity begins with the consolidated balance sheets. There are several issues that you should keep in mind when preparing a consolidated statement of cash flow ...

A firm has a debt-to-equity ratio of 062 its cost of equity

A firm has a debt-to-equity ratio of 0.62. It's cost of equity is 20%, and it's cost of debt is 15%. If the corporate tax rate is 34%, what would it's cost of equity be if the firm was all equity financed? (Answer in dec ...

1 describe the basic types of regional trade agreements

1. Describe the basic types of regional trade agreements. Discuss some of the advantages and disadvantages of MNCs doing business in each type. 2. Discuss some of the implications (costs and benefits) of a common currenc ...

The centers for disease control and prevention released a

The Centers for Disease Control and Prevention released a report in 1998 that attributed part of the increase in youth smoking in the 1980s to the use of the cartoon character, Joe Camel, in cigarette advertising. Using ...

• 13,132 Experts

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro