Calculate the present value of the bond

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Reference no: EM132841986

Questions -

Q1. Suppose a United States government bond pays $ 2,155.40 in 5 years at 6% interest. Calculate the present value of the bond.

Q2. If an investor intends to double $ 35,000 by investing in a bank that pays 6% interest per year, determine the time it would take to double the investment.

Q3. Suppose the risk-free rate is 6.4% and the market return is 8%. Calculates the expected rate of return on a stock with a volatility (beta) of 3%.

Q4. Palmira Industries' current bonds have a face value of $ 900, a 7% semi-annual coupon, 10 years to maturity, and a 9% YTM. Determine the price of the bond.

Q5. Calculate the nominal rate of return on a perpetual preferred share with a face value of $ 300, a dividend of 8% of the face value, and a current market price of $ 270.

Reference no: EM132841986

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