Reference no: EM131615

Question 1:  Assume you have the following Personal Loans outstanding and have allocated $675 per month as your total payments to be made. Do not incorporate tax consequences (assume all rates are after tax).

Assume that all loans have 120 months remaining (amortizing over 120 months).

Assume you must make minimal payments on all debt in each month.

Assume partial months can be paid;

What is the minimal time needed, given your budget allocation, to pay off all debt?

Question 2:  You are seeking to refinance your mortgage. In order to do so, you must pay a fee of $350 and a loan fee of 1%. The loan fee is based on your new loan amount; both the flat fee and 1% fee can be added to new loan balance. You will only do so if you can save $200 per month going forward. Given the following information, can you save the monthly amount by refinancing?

Question 3: Data below is taken from the recent yield curve. Calculate the implied 1-year forward rate, from period 2 to period 3

Use Annualized compounding.
Hint: Begin with $100 in period zero; calculate the end values at the end of the respective periods.

Question 4: A Zero Coupon bond was issued with a 20 year maturity. It was issued at a 12% YTM. 5 Years later, you purchased this zero coupon; your purchase price has a YTM at 9%. With 5 years left to maturity on the zeron coupon bond, you sell that asset. The buyer's YTM upon your sale is 7%. (Use annual compounding only).

Given the above information, what was you annualized return on this investment?

Question 5:  You require a 12% return on your investments; consider the potential below as an average investment. What is the price of the stock (per share), given the following information:

Question 6:

Calculate the Weighted Average Cost of Capital for XYZ

Question 7: Calculate the required return of XYZ common stock using Capital Asset Pricing Model.