Reference no: EM13215561
Q1: Your real estate agent mentions that homes in your price range require a payment of approximately $1,200 per month for 30 years at 12% (APR) interest. The first payment will be made at the end of the third year (month 36). What is the approximate size (present value, month 0) of the mortgage?
Q2: What is the coupon rate for a bond (face value $1,000) with five years until maturity, a price of $957.88, and a yield to maturity of 6%? What is the current yield for this bond?
Q3:Professor's Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $70,000 ("present value") at age 65, the firm will pay the retiring professor $500 a month until death. If the professor's remaining life expectancy is 20 years, what is the (implied) APR on this annuity? What's the implied EAR?
Q4: You would like to save for $100,000 when you retire in 40 years. You have $5,000 in your account now. How much do you need to save every year over the next 40 years if the discount rate is 6%?
Q5: Gentleman Gym just paid its annual dividend of $4 per share, and it is widely expected that the dividend will increase by 5% per year indefinitely. What price should the stock sell at? The discount rate is 12%. Please note that if you buy the stock now, the first dividend will be received in a year, which is $4*1.05=$4.2.
Q6: Waterworks has a dividend yield of 9%. If its dividend is expected to grow at a constant rate of 6%, what must be the expected rate of return on the company's stock?
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Discuss the account payable audit objectives
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New-product development
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What metal occurs in a vast limestone deposits
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Define what is the coupon rate for a bond
: What is the coupon rate for a bond (face value $1,000) with five years until maturity, a price of $957.88, and a yield to maturity of 6%? What is the current yield for this bond?
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