Abner​ Corporation's bonds mature in 17 years and pay 7 percent interest annually. If you purchase the bonds for ​$1,175​, what is your yield to​ maturity?       Question content area bottom Part 1 Your yield to maturity on the Abner bonds is enter your response here​%.

Q: £4,000 is invested at time t=0 and a further 12,000 at t=6. Calculate the value of the fund at the…

A: The FV of an investment refers to the combined worth of the cash flows assuming that they grow to…

Q: You are told that the nominal rate of interest is 3.46% per quarter year payable monthly. Calculate…

A: Nominal Rate of Interest = r = 3.46%Interest rate compound = rc = Quarterly = 4Payable Compound = pc…

Q: A thirty-year bond that pays a 3% coupon rate has a yield to miturity of 6%. With coupon payments…

A: Bonds refer to instruments issued by companies for raising debt capital from investors and other…

Q: Suppose you are given the following information about the default-free, coupon-paying yield curve:…

A: In order to find the solution, we have to find the interminant coupon present value by discounting…

Q: Months Financed Maximum Car Price 48 60 f you finance the car for a shorter period of time, you can…

A: To determine the maximum car price, we need to find the PV of the monthly payment and then add the…

Q: Last​ year, net profits of a company were nine-elevenths of revenue. If the company declared a…

A: We know net profit = divident + retained earnings

Q: An enterprise needs to make the following annuity payments into a private pension fund: £1100 paid…

A: The payment are made at the beginning of the each year. Therefore, there is an annuity due. The…

Q: Even though most corporate bonds in Canada and the United States make coupon payments semiannually,…

A: A bond is a kind of debt security issued by the government and private companies to the public for…

Q: The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece…

A: Book value of the asset refers to the value of asset after depreciation for the year.

Q: An eight-year bond with a current market price of $700 has a 6% coupon rate. If the bond pays…

A: Yield to maturity is the return the investor gets by holding the given bond till its maturity, It…

Q: When creating the optimal risky portfolio, how much weight in decimals should you invest in the…

A: Risk and return are essential financial principles. The term “risk” refers to the uncertainty and…

Q: How much will the firm owe its suppliers at the end of Quarter 3?

A: We can determine the amount owed to suppliers at end of quarter 3 using the formula below:

Q: you do it again, please, no tables, only form

A: Force of interest rate is the effective rate at which the nominal rate of interest is compounded…

Q: You are a consultant to a firm evaluating an expansion of its current business. The cash-flow…

A: NPV means Net present value.It is a capital budgeting technique used for making investment…

Q: 3. Allied Corporation has zero coupon bonds outstanding that mature in 15 years. Calculate the…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Calculate the annual force of interest which is equivalent to an effective rate of interest of 1.9%…

A: Effective rate of interest is the interest rate after considering impact of compounding on the…

Q: The Perez Company has the opportunity to invest in one of two mutually exclusive machines that will…

A: Machine A:Initial Investment = $9 millionAfter-tax cash flow for 4 years = $3.5 millionSince machine…

Q: You are building out your 1 x 3 point and figure chart that is currently in a column of X's with the…

A: Stock market:The stock market is a platform where companies can raise capital by issuing shares of…

Q: ot correct, some calculations are wrong, can you try again

A: Since the payments are made in the beginning of the period, the formula used will be an annuity due.…

Q: What will be their optimal upper cash limit?

A: The optimal upper cash limit describes the maximum level of cash reserves that a company should…

Q: a) What is the DPBP for the investment? Show your answer to 2 decimal places. b) Based on a 10-year…

A: The time it takes for an investment to recoup its initial cost is measured using the discounted…

Q: Planned Obsolescence has a product that will be in vogue for 3 years, at which point the firm will…

A: The present value of dividends is the current value of future dividend payments that a stock or…

Q: A company pays the following separate amounts into a fund: £13,000 at t=0,  £11,200 at t=4 and £600…

A: Variables in the question:Time           Funds0                  £13,0004                  £11,2008…

Q: What is the future value of an investment

A: The future value of an investment forecasts the expected value of an investment at a given future…

Q: Consider a student loan of $10,000 at a fixed APR of 10% for 5 years. a. Calculate the monthly…

A: Here,LoanAmount (PV) is $10,000Interest Rate (r) is 10%Time Period of Loan (n) is 5 yearsCompounding…

Q: Suppose we are thinking about replacing an old computer with a new one. The old one cost us…

A: Net present value: It is the difference between the present value of cash inflows and cash outflows.

Q: Dowling Sportswear is considering building a new factory to produce aluminum baseball bats. This…

A: Initial investment is $6,000,000.Annual Cash inflows are $1,100,000.The Discount rate is 7%.The…

Q: For each of the following situations involving annuities, solve for the unknown. Assume that…

A: Theformula for calculating the present value of annuity is

Q: Stock A just paid a dividend of $2. The dividend is expected to grow at a fixed rate of 1.9% and…

A: To calculate the price of Stock A with a perpetually growing dividend at a fixed rate, you can use…

Q: Professor Wendy Smith has been offered the following opportunity: A law firm would like to retain…

A: Initial cash inflow = $50000Hourly payment = $550Daily hours = 8Cost of capital = 12%we have to…

Q: Abigail Grace has a $900,000 fully diversified portfolio. She subsequently inherits ABC Company…

A: The expected return of the portfolio refers to the projected income that the individual can earn by…

Q: In practice, a common way to value a share of stock when a company pays dividends is to value the…

A: Common stock is a financial security that depicts an ownership claim to a corporation. The price of…

Q: Ms. Adams has received a job offer as an administrative assistant. Her base salary will be $50,000.…

A: The time value of money is a finance concept that takes the time effect into account for the value…

Q: Given the information below for Seger Corporation, compute the expected share price at the end of…

A: Years201420152016201720182019Price88.6094.5093.2090.70112.20127.60EPS2.553.264.064.767.208.20CFPS7.4…

Q: An amount, P, must be invested now to allow withdrawals of $1,200 per year for the next 15 years and…

A: The PV of an investment refers to the combined value of the cash flows assuming that they are…

Q: Suppose that Cloudastries Bank is a U.S.-based financial intermediary that serves the foreign…

A: The exchange rate refers to the rate at which different country's currencies are being exchanged.…

Q: Winter’s prefers to finance its capital spending with 35 percent debt, 25 percent internal equity,…

A: Internal equity refers to the owner’s equity.It also includes the profits and retained earnings of…

Q: After successfully completing your corporate finance class, you feel the next challenge ahead is to…

A: Schenkel has 550,000 shares outstanding and the stock currently sells for $33.

Q: The trustees of the Danube School of Art and Music, located in Tuttlingen, Germany, are considering…

A: The IRR of a project refers to the measure of the profitability of the project by finding the…

Q: £12,000 is invested at time t=0. Calculate the value of the fund after 14 years if the nominal rate…

A: Future value refers to the value of annuity of cash flows at future date. Future value is the…

Q: Consider the following bonds Which of the bonds A to D is most sensitive to a 1% drop in interest…

A: Bonds are debt instruments issued by companies. Bond holders are paid periodic coupons. The value of…

Q: Initial Interest Rate Loan Maturity (years) Margin Above Index Adjustment Interval Points Interest…

A: Interest rate riskA rise in the current rates for new debt instruments might result in investment…

Q: Where does managing office finances begin in the providers office? Explain your answer. Discuss…

A: Health care finance:It includes the allocation of funds for various healthcare services, such as…

Q: 02% 3% 04% Ⓒ5% för par value has three years until it matures and has a 4% coupon rate. Assuming…

A: Current yield is an important return metric associated with bonds. Current yield is the rate of…

Q: Consider a bond with a settlement date of February 22, 2022, and a maturity date of March 15, 2030.…

A: The coupon rate is 5.5%.The yield to maturity is 5.34%.The settlement date is February 22, 2022.The…

Q: b. Cost of equity c. Cost of equity d-1. WACC d-2. WACC 9.76 % 12.15 X % % %

A: We can determine the cost of equity using the formula below:Then we can determine the WACC using the…

Q: Phoenix Industries has pulled off a miraculous recovery. Four years ago it was near bankruptcy.…

A: Dividend for Year 1 = d1 = $2Growth in price of dividend each year for next 2 years = gp = $1Growth…

Q: A bond that matures in 10 years has a ​$1,000 par value. The annual coupon interest rate is 8…

A: 1.Present value of Interest payments is computed as follows:-PV = A*wherePV = Present value of…

Q: O 14.26% 10 20% Nocci O 1120%

A: In grating loans bank require some balance to be maintained in bank so actual loan in hand is much…

Q: Derek borrows $305,963.00 to buy a house. He has a 30-year mortgage with a rate of 5.49%. After…

A: Present value refers to the current date value of all the future and terminal cash flows. Cash flows…