An investor with a bond of par value $1,000 paying 5% coupon semi-annually will receive ________. a. $100 annually b. $25 semi-annually c. $25 annually d. None of the above.
Q: How can a good credit score help you obtain the job you want?
A: Credit scores are given by the credit agencies based on the credit habits of the borrower and how he…
Q: Membo Inc. just paid a dividend of $4.6 per share. Dividends are expected to grow at 6%, 5%, and 3%…
A:
Q: What are the firm’s net profit margins for 2018 and 2019?
A: Net Profit Margins = Net Income /Sales The Correct Answer is Option b 22.79%, 15.56% as calculated…
Q: Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation…
A: As per the investment criteria, 100 shares of that company will be purchased whose stocks are priced…
Q: Previously, you purchased a European call option on Parlicoot Inc shares. The option has just…
A: Call option payoff is calculated using following equation Call option payoff = Max(0,ST-K) Where, ST…
Q: onsider an EOY geometric gradient, which lasts for eight years, whose initial value at EOY one is…
A: formula. P = A(1-(1+i)-n(1+g)n)i-g where , A= cash flow in period 1. i = interest rate g= rate of…
Q: Parts A and B Piscataway valves decided to pursue development of a new product line for natural gas…
A:
Q: What’s the future value of $100 after 3 years if the appropriate interest rate is 8%, compounded…
A: Information Provided: Principal = $1000 Period = 3 years Interest rate = 8%
Q: ares in OKComputer currently trade at $45.33. Your broker allows you to short sell the shares with…
A: Brokers provide margins to clients in the forward and futures so that they can trade more and so…
Q: articular share, a 1 per cent change in the market index return generally leads to a return of less…
A: Beta of stock is related to overall risk of firm and risk that is related to overall market. This is…
Q: a. If the tax rate is 21 percent, what is the project's Year O net cash flow? Year 1? Year 2? Year…
A: Information Provided: Initial Investment = $2.29 million Annual sales = $1,790,000 Annual costs =…
Q: What is the future value of a property at the end of 12 years whose present value is currently…
A: To calculate the future value we will use the below formula Future value = PV*(1+(r/m))(n*m)…
Q: A payment stream consisting of $1807 due (but not paid) 9 months ago, and $40 months is to be…
A: The simple interest is very simple and straight forward interest and there is interest on the…
Q: Bonds that permit the bondholder to exchange the bonds into shares of common stock at a fixed price…
A: 1) Callable Bond is a derivative which gives the issuer the right to redeem the bond before bond's…
Q: You complete a runs test on daily data for a thinly traded stock and the Z statistic is -5.13. If…
A: Solution: 5. Take neither a long or short position in the stock. Explanation: The Z statistic…
Q: In practice, a common way to value a share of stock when a company pays dividends is to value the…
A: Share price is the sum of present value of all dividends paid discounted at certain discount rate…
Q: You are allocating your wealth between two shares, Tinkle.com and Circumbendibus Wheels. Tinkle.com…
A:
Q: Nesmith Corporation's outstanding bonds have a $1,000 par value, a 12% semiannual coupon, 16 years…
A: Bond price is the sum of interest payments and maturity value discounted at yeild to maturity Bond…
Q: Course: Financial Mathematics An investor places a capital at 50% for 3 years and then withdraws 20%…
A: Simple Interest = Principal * rate % * time Let the investment be x. Initial Investment – X Time…
Q: $20,500 is invested in this portfolio which consists of stocks Netflix (NFLX) and Amazon (AMZN).…
A: To Find: Portfolio Expected return Portfolio Standard Deviation
Q: 3.21%
A: Given: Market volatility =13% Share volatility = 23% Correlation = 0.03 Risk free rate =2.90%…
Q: A project which cost you $150,000 to implement, promises to produce the following cash-flows over…
A: Discount rate is 15% To Find: Payback period of the project
Q: Calculate the arithmetic average returns for large-company stocks and T-bills over this period. (Do…
A: Arithmetic Average: It is a measure of the mean used in statistics. It is estimated by dividing the…
Q: Lisa took out a loan for $10,500 and was charged simple interest at an annual rate of 8.8%. The…
A: Amount of Loan is $10,500 Annual rate is 8.8% Total interest paid is $462 To Find: Total number of…
Q: (1) The total amount of a loan to which interest has been added is P 200,000. The term of the loan…
A: 1) Simple Interest @ 6% Interest = (Principal amount * Interest rate * Time period ) where…
Q: A stock has had returns of 16.72 percent, 12.20 percent, 5.90 percent, 26.86 percent, and −13.49…
A: r1 = 0.1672 r2 = 0.1220 r3 = 0.0590 r4 = 0.2686 r5 = - 0.1349 Number of returns (n) = 5
Q: More consumers today are utilizing Uber or Lyft instead of traditional taxi cabs. What type of…
A: Resource trade off helps in using the resources like time, money in a prudent manner.
Q: A company needs to raise $9 million and issues bonds for that amount rather than additional capital…
A: Equity shares are having residual claim on the company at the time of liquidation because equity…
Q: Nesmith Corporation's outstanding bonds have a $1,000 par value, a 7% semiannual coupon, 12 years to…
A: Price of a bond is the present value of all its future cash flows. Here the future cash flows will…
Q: 3. Which of the following statements about a stock's beta is true? (a) A beta greater than one is…
A: Beta is a measure of Systematic risk of a stock or portfolio. Generally, the market beta is always…
Q: Is it ethical to concentrate only on shareholder wealth, or should stakeholders as a whole be…
A: A shareholder is a person who owns shares of a company. Shareholders are also owners of a company…
Q: Esfandairi Enterprises is considering a new three-year expansion project that requires an initial…
A: Net present value is the difference between Present Value of cash Inflows and Initial Investment. A…
Q: Chang took out a loan for 146 days and was charged simple interest at an annual rate of 12.5%. The…
A: Time period is 146 days Total days in a year is 365 Simple interest amount is $245 Simple interest…
Q: Using the formula for the time value of money, if a sum $15,000 is invested for one year at 10%…
A: Future Value refers to the compounded value of a single cash flow received today or multiple cash…
Q: ng the formula for the time value of money, if a sum $15,000 is invested for one year at 10%…
A: Future value money the amount being deposited and the amount of interest being accumulated over the…
Q: A bond, paying semi-annual coupons of 8% per annum, matures in 18 months time, and has a dirty price…
A: Yield to maturity refers to the rate of return which shows the percentage of investment have been…
Q: You have compiled the following information on Winslow, Inc.: 2019 2020 Assets Cash $ 298 $ 306…
A: cash flow to creditors for 2020 = Interest paid - Net new borrowings
Q: You are allocating your wealth between two shares, GoldenClaw and Syldavian Industries. GoldenClaw…
A:
Q: n investor decides to invest in shares in two companies, rather than in just one. The expected…
A: Diversification is doing investment in more stocks rather than one or two stocks due to this overall…
Q: Calculate the average daily balance and finance charge on the statement below. Note: Round your…
A: Credit cards are personal debt financing that is provided to customers by financial institutions. It…
Q: Harrimoh Industries bonds have 5 years left to maturity. Interest is paid annually, and the bonds…
A: Bond price is the sum of interest payments and maturity value discounted at yeild to maturityBond…
Q: Prepare the depreciation schedule, using the declining-balance method (twice the straight-line…
A: Calculation of rate of depreciation
Q: Find the commission # 8 Real Estate 9 Computers 10 Major Appliances 11 Clothing 12 Computer Supplies…
A: A sales commission is the sum of money given to someone based on the volume of sales they produce.…
Q: Assume your portfolio consists of 50% of a stock with a beta of 0.275 and 50% of a stock with a beta…
A: 1) Beta is a measure of Systematic risk of a stock or portfolio. Beta of market is always one.…
Q: How much money must you invest today in order to withdraw P1000 per month for 10 years if the…
A: Number of payment periods = Number of years×Frequency of payment in a year = 10×12 = 120 Monthly…
Q: Shares in SergeantPepper will earn a return of 6.00% during a bull market, and 6.10% during a bear…
A: To Find: covariance of the two security returns
Q: Inventory is not part of the liquid assets because it is mostly physical in nature. True False
A: Liquid assets are the assets which can easily be converted into cash in short duration of time.…
Q: Explain how a shareholder can, without knowing the future, diversify away the unsystematic risk of…
A: Unsystematic risk It is the risk that is specific to a company or industry. Unsystematic risk is not…
Q: Joey chose to invest his money in an account that pays 2.3% annual interest compounded monthly.…
A: In a time series of deposits, the interest is compounded monthly. We have to find interest added…
Q: During the last two centuries, after adjustment for inflation, stocks have yielded an average real…
A: Stocks are investment in equities where you buy common stocks and equity stocks for a company. Bond…
An investor with a bond of par value $1,000 paying 5% coupon semi-annually will receive ________.
Step by step
Solved in 2 steps with 2 images
- Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually. Calculate and explain the timing of the cash flows the purchaser of the bonds (the investor) will receive throughout the bond term. Would an investor be willing to pay more or less than face value for this bond?Q4. A long term bond with a face value of $10,000 has a bond interest rate of 6% per year pay: quarterly. What are the amount of the interest payments? (a) $160 (b) $150 (c) $170 (d) $155 (e) your answer (... ......)3. Assume you purchased a bond for $9,186. The bond pays $300 interest every six months. You sell the bond after 18 months for $10,000. Calculate the following: a. Income. b. Capital gain (or loss). c. Total return in dollars and as a percentage of the original investment. Review Only Click the icon to see the Worked Solution. a. The current income is $ (Round to the nearest dollar.) b. The capital gain (or loss) is $ (Enter a loss as a negative number and round to the nearest dollar.) c. The total return in dollars is $ (Round to the nearest dollar.) The total return as a percentage of the original investment is %. (Enter as a percentage and round to two decimal places.)
- The Saleemi Corporation's $1,000 bonds pay 6 percent interest annually and have 15 years until maturity. You can purchase the bond for $1,155. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 6 percent? Question content area bottom Part 1 a. The yield to maturity on the Saleemi bonds is enter your response here%. A) You invest OMR 900 in a bond which gives 9% interest over a period of 2 years, the compounding is done quarterly. How much will be the value of the investment? Select one: a. 1053.24 b. 1254.74 c. 1075.34 d. 753.24 B) Which of the statements are not correct Select one: a. Profits refers to earnings before Interest and Taxes b. Investment decisions relate to pattern of financing c. Dividend pay out ratio refers to what proportion is paid to shareholders d. Borrowed funds are relatively cheaper than shareholders’ funds(Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 6 percent interest annually and have 8 years until maturity. You can purchase the bond for $1.115. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 3 percent?
- Bank A issues a bond with a maturity of 3 years, par value of $1,000,000, and annual coupon rate of 2%. Company B buys this bond at date 0. 1. in this situation, who lends money and who borrows money? 2. what are the cash flows received by B if it decides to hold the bond until maturity?Q) An $6,000 face-value bond matures in four (4) years and pays 6% per year payable Semiannually An investor wants a 10% return per year compounded Semiannually. How much should the investor pay for the bond? Explain it correctly. Note:- not solve in excel works.Typed or handwriting onlysYou're considering an investment in 10-year, $1,000 face value bonds that pay 8.50% annually and sell for $1,033.55. If you do make the purchase, how much will you earn? Select one: O a. 8.00% O b. 8.50% Oc. 7.59% Od 8.25% Oe. 8.86% Clear my choice A
- (Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 6 percent interest annually and have 9 years until maturity. You can purchase the bond for $1,115. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 6 percent? a. The yield to maturity on the Saleemi bonds is %. (Round to two decimal places.) C...A bond with a coupon rate of 6 percent that pays interest semiannually and is priced at par will have a market price of ___ and - interest payments in the amount of__ each. 1. A. $1,060; $60 2. B. $1,000; $30 3. C. $1,006; $60 4. D. $1,000; $60 5. E. $1,060; $30A bond has a face value of $30,000 and matures after 8 years. Five offers were submitted for the purchase of the bond as follows: offer 1 = $25,800; offer 2 $23,1003; offer 3 = $26,450; offer 4 = $22,050; and offer 5 = $25,550. Which offer will yield the highest return on investment? O a. Offer 2 Ob. Offer 1 O c. Offer 4 O d. Offer 5 O e. Offer 3