Bond valuation-what is the yield to maturity

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Bond valuation: Suppose a bond with a face value of $1000 is discounted to the present at 10%, what is the present value of the bond in 30 years if the market rate is 5 %?

Suppose the bond had been a premium bond, with a present value at $1200, what is the yield to maturity, if the effective annual rate is 3%?

Suppose a stock that purchased at $54 a share has a value of $60 per share the following year, what is the holding period return if the stock pays a dividend of $3?

Referring to question 3, what is the current/present value of the stock if the risk-adjusted rate is 12%?

Suppose there is a 25% chance that the return on a stock will be 3.5%, 35 % chance that the rerun will be 2.5 %, and 40% chance that the return will be 2%, what will be the expected rate of return? What is the variance.

Reference no: EM132018404

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