Reference no: EM132483022
Question 1: Suppose you purchased 206 shares of ABC., Inc for $45.36 per share. The company paid a dividend of $7.23 per share during the year, and had an ending share price of $59.41. What is the dollar return on your investment?
Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. If your answer is negative, do include the negative sign.
Question 2: Suppose you hold the following three securities in your portfolio. What is the portfolio beta?
Security Investment Beta
A $1,757 1.76
B $8,034 1.52
C $6,820 1.36
Note: Enter your answer rounded off to two decimal points.
Question 3: Assume that you wish to buy a bond with 15 years to maturity, with a par value of $1,000, and a coupon rate of 22.38%. Assume semi-annual payments. If the yield to maturity (YTM) is 21.91%, what is today's price of this bond?
Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.
Question 4: ABC, Inc. has issued a 16-year bond with a par value of $1,000, coupon rate of 7.75%. The yield to maturity (YTM) is 7.94%. Assume semi-annual payments. What is today's price of this bond?
Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.
Question 5: A 6% semiannual coupon bond maturing in 5 years with a par value of $100 is trading at $90. Calculate the yield to maturity.
Group of answer choices
- 6.18%
- 5.41%
- 8.50%
- 9.03%
Question 6: ABC Inc. recently issued $1,000 par bonds at a 5.25% coupon rate. The bonds have 15 years to maturity and current price of the bond is $850. If the call price is $1,050 and the bond can be called in 10 years, what is the yield to call? Assume semi-annual compounding.
Note: Convert your answer to percentage and round off to two decimal points. Do not enter % in the answer box.
Question 7: Suppose you paid $1,115.33 for a corporate bond that has a 14.24% coupon rate. What is the current yield? Assume that the par value of the bond is $1,000.
Note: Convert your answer to percentage and round off to two decimal points. Do not enter % in the answer box.
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Prepare the journal entry to record the redemption of bonds
: At the time, the bonds had a remaining discount of $2 million. Prepare the journal entry to record the redemption of the bonds
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What is the periodic rate if the nominal rate
: 1. What is the periodic rate if the nominal rate is 9.25% compounded monthly?
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Design and distribution of the issue
: The out-of-pocket expenses incurred by Security Brokers in the design and distribution of the issue were $280,000. What profit or loss would Security Brokers in
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Prepare the adjusting entry required for each transaction
: On September 1, 2018, Zumra collected six months' rent of $8,400 on storage space. Prepare the adjusting entry required for each transaction
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Determine what is the yield to call
: Current price of the bond is $850. If the call price is $1,050 and the bond can be called in 10 years, Determine what is the yield to call?
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Calculate the growth rate in dividends
: You buy a share of The Ludwig Corporation stock for $20.60. You expect it to pay dividends of $1.00, $1.0750, and $1.1556 in Years 1, 2, and 3, respectively
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What are the cash flows to tom under each scenario
: What are the cash flows to Tom under each scenario? (In your computations, round "ownership percentage" to 2 decimal places.
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Compute the net present value of the proposed project
: The advisers expect the company to pay $1,400,000 cash at the beginning of the investment. Compute the net present value of the proposed project
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Show the entries after the meeting adjourned
: a. Show the entries after the meeting adjourned. b. When is the ex dividend date?
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