Reference no: EM132068868
PRICING BONDS AT A DISCOUNT -
(a) Calculate the price of a 3 percent coupon (annual coupons), $1,000 face value 30-year bond if the appropriate discount rate is 6 percent. Show your return if you hold this bond for two years and discount rates don't change. (INCLUDE FORMULAS USED TO SOLVE PROBLEM IN EXCEL).
PRICING BONDS WITH SEMI-ANNUAL COUPON PAYMENTS -
(b) Calculate the price of a 4 percent coupon, $100 face value, 3-year bond if the coupon is paid semi-annually and the (correct) annual discount rate is 10 percent. Calculate your actual return if you hold this bond for one year and the discount rate does not change. (INCLUDE FORMULAS USED TO SOLVE PROBLEM IN EXCEL).
PRICING ZERO COUPON BONDS -
(c) Calculate the price of a zero coupon, $1,000 face value, 20-year bond if the appropriate annual discount rate is 8 percent. Calculate your total return if you hold this bond for five years and the discount rate does not change. (INCLUDE FORMULAS USED TO SOLVE PROBLEM IN EXCEL).
CURRENT YIELD -
(d) Calculate the price of a 4 percent coupon (annual coupons), $100 face value, 3-year bond if the appropriate discount rate is 10 percent each year. What is the bond's current yield? What return do you actually expect to make if you hold this bond for one year? (INCLUDE FORMULAS USED TO SOLVE PROBLEM IN EXCEL).
Costs incurred as percentage of total estimated costs
: Assume that the company estimates percentage complete based on costs incurred as a percentage of total estimated costs.
|
What is walden cost of goods sold
: During 2014, Accent sold 23,000 unites at price of 35 euros per unit. Under the first in, first out (FIFO) method, what is Walden’s cost of goods sold for 2014.
|
Pricing bonds at a discount-actual return
: Calculate the price of a 3 percent coupon (annual coupons), $1,000 face value, 3-year bond if the appropriate discount rate is 5 percent.
|
What is the net profit and loss on your position
: Suppose you buy an October expiration call option with exercise price $105. What is the net profit/loss on your position?
|
Pricing bonds at a discount
: Calculate the price of a 3 percent coupon (annual coupons), $1,000 face value 30-year bond if the appropriate discount rate is 6 percent.
|
What is the actual expected return
: What is the actual expected return on a US government 12-month, T-bill that is priced at $990, assuming its face value is $1,000?
|
What is the best estimate of the stock price per share
: Based on the corporate valuation model, what is the best estimate of the stock's price per share?
|
How much interest did bob earn
: How much does Bob have in his retirement account at the end of his 42 years of saving? How much interest did Bob earn?
|
Sole proprietorship-partnership and corporation advanatges
: Amazon.com Inc. Sole proprietorship, Partnership, and Corporation Advanatges and disadvantages?
|