Author: Anonymous

A 3.38% coupon, 7.0 -year annual bond has a yield to maturity of 9.06%. Assuming the par value is 1,000 and the YTM does not change over the next year, Compute the following: Price of the bond today: [1] Price of the bond in one year: [2] Capital gains yield (please answer as a percentage with 2 decimal places): [3] Current Yield (please answer as a percentage with 2 decimal places): [4]

Prepare the first row of a loan amortization schedule based on the following information. The loan amount is for $19,434.00 with an annual interest rate of 16.84%. The loan will be repaid over 8.0 years with monthly payments. Loan payment: [1] Interest portion: [2] Principle portion: [3] Loan balance after first monthly payment: [4]

A 4.00% coupon, 18.0 -year annual bond has a yield to maturity of 6.51%. Assuming the par value is 1,000 and the YTM does not change over the next year, Compute the following:  Price of the bond today: [1] Price of the bond in one year: [2] Capital gains yield (please answer as a percentage with 2 decimal places): [3] Current Yield (please answer as a percentage with 2 decimal places): [4]

What is the value today of single payment of $[FV].00, [t].0 years from today if the value is discounted at a rate of [r]%?

Suppose you invest $[PV].00 today in an account that earns [r]% interest annually. How much money will be in your account [t].0 years from today?

A stock has an expected return of  8.03%  and a standard deviation of  18.66%. Compute the following for this stock. (Please write all answers as percentages (e.g. .1234 should be written as 12.34): Upper range of 68% confidence interval: [1]% Lower range of 68% confidence interval: [2]% Upper range of 95% confidence interval: [3]% Lower range of 95% confidence interval: [4]% Upper range of 99% confidence interval: [5]% Lower range of 99% confidence interval: [6]%

A 8.19% coupon, 12.0 -year annual bond has a yield to maturity of 7.54%. Assuming the par value is 1,000 and the YTM does not change over the next year, Compute the following: Price of the bond today: [1] Price of the bond in one year: [2] Capital gains yield (please answer as a percentage with 2 decimal places): [3] Current Yield (please answer as a percentage with 2 decimal places): [4]

Prepare the first row of a loan amortization schedule based on the following information. The loan amount is for $26,175.00 with an annual interest rate of 3.83%. The loan will be repaid over 4.0 years with monthly payments. Loan payment: [1] Interest portion: [2] Principle portion: [3] Loan balance after first monthly payment: [4]

The market risk premium for next period is 9.10% and the risk-free rate is 3.70%. Stock Z has a beta of 0.953 and an expected return of 14.70%. Calculate the following. Please write your answers as percentages (e.g. .1234 should be written as 12.34): Market’s reward-to-risk ratio: [1]% Stock Z’s reward-to-risk ratio: [2]%

An analyst gathered the following information for a stock and market parameters: stock beta =  1.132 ; expected return on the Market =  12.33% ; expected return on T-bills =  2.45% ; current stock Price =  $9.36 ; expected stock price in one year =  $10.47 ; expected dividend payment next year =  $1.14 . Calculate the required return and expected return for this stock. Please write your answers as percentages (e.g. .1234 should be written as 12.34): Required Return: [1]% Expected Return: [2]%