Reference no: EM13878223
1. RentBooks.com is considering floating a bond offering and is attempting to determine what kind of interest rate they would be paying. The market price of comparable bonds is $314.64, face value of $533. The CEO of RentBooks.com, Frannie Kasper desires a bond with payments of $63 and a maturity in 5 years. What is the interest rate?
2. Compute the current market value of a bond with a $857 face value, maturing in 1 years, an interest rate of 3%, and annual payments of $67
3. Chase Bank is offering an account that pays a simple 27%, compounded semiannual; what is the effective annual rate? (enter as percentage and round to 2 decimals)
4. You are valuing a stock from Facebook in which you are estimating a stock price of $31.21 in 2 years. Given the relative riskiness of this stock, you estimate you need a return of 12%. For the next 2 years, you estimate you will receive $3.06 in annual dividends. How much is this stock worth today?
5. You are valuing a stock from Microsoft in which you are estimating a stock price of $39.59 in 9 years. Given the relative riskiness of this stock, you estimate you need a return of 13%. For the next 9 years, you estimate you will receive $2.22 in annual dividends. How much is this stock worth today?
6. This morning, you bought 774 shares of ABC Inc. for $44.36 each. Right after you bought these shares, ABC Inc.'s earnings report came out. You now think they will grow at 0% and require a return of 16%. Their most recent dividend was $7.47. What is your total profit(loss)?
7. Compute the current market value of a bond with a $784 face value, maturing in 9 years, an interest rate of 10%, and annual payments of $64
8. Compute the present value of an ordinary annuity receiving 7 annual payments of $29 at an interest rate of: 21% (round to 2 decimal places)
9. Compute the Present Value of a payment of $181 received in 2 years at a discount rate of 5%.
10. The last dividend for ABC Manufacturing was $3.50, and the expected growth rate is 6 percent.If you require a return of 12 percent, what is the most that you would pay for this stock?
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Compute the current market value of bond
: RentBooks.com is considering floating a bond offering and is attempting to determine what kind of interest rate they would be paying. The market price of comparable bonds is $314.64, face value of $533. The CEO of RentBooks.com, Frannie Kasper desire..
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