Reference no: EM131088601
1. You will he paying S 10.000 a year in tuition expenses at the end of the next two years. Bonds currently yield SC. (LO 11-2)
a. What is the present value and duration of your obligation?
b. What maturity zero-coupon bond would immunize your obligation?
c. Suppose you buy a zero-coupon bond with Nalue and duration equal to your obliga-tion. Now suppose that rates immediately increase to 9C-. What happens to your net position. that is. to the difference between the value of the bond and that of your tuition obligation?
d. What if rates fall to 7C?
2. A 30-year maturity, 8% coupon bond paying coupons semiannually is callable in five ).ears at a call price of SL100. The bond currently sells at a yield to maturity of 7% (3.5% per half-year). (LO 10-4)
a. What is the yield to call?
b. What is the yield to call if the call price is only S1.050?
c. What is the yield to call if the call price is S1.100 but the bond can be called in two years instead of five years?
3. XYZ stock price and dividend history are as follow;:
|
Year
|
Beginning-of-Year Price
|
Dividend Paid at Year-End
|
|
2010
|
SIOn
|
$4
|
|
2011
|
5110
|
$4
|
|
2012
|
$ 90
|
44
|
|
2013
|
$ 95
|
44
|
An investor buys three shares of XYZ at the beginning of 2010. buys another two shares at the beginning of 2011. sells one share at the beginning of 2012. and sells all four remaining shares at the beginning of 2013. (LO 54)
a. What are the arithmetic and eeometric average time-weighted rates of return for the investor?
b. What is the dollar-weighted rate of return? (Hint: Carefully prepare a chart of cash flows for the jeer dates corresponding to the turns of the year for January 1. 2010. to January I. 2013. If your calculator cannot calculate internal rate of return. you will have to use a spreadsheet or trial and error.)
|
What does this evaluation tell you about the client
: What does this evaluation tell you about the client? Does it assist you in determining what kind of work this person may be capable of? What questions do you have after reading the report? I am not asking you to write a psychological or medica..
|
|
Understanding of the term economic growth
: 1.) What is your understanding of the term "Economic Growth?" 2.) Describe the supply factors that affect economic growth.
|
|
Flocked to volkswagen dealerships
: Upon merging with the West German economy, East German consumers indicated a preference for Mercedes-Benz automobiles over Volkswagens. However, when they converted their savings into deutsche marks, they flocked to Volkswagen dealerships.
|
|
Relationsip with family and friends popularity and rejection
: Social and personality development in adolescence: Religion, Identity, race, ethnicity, depression and suicide. Relationsips with family and friends, popularity and rejection. Dating, sexual behavior and teenage pregnacy.
|
|
The present value and duration of your obligation
: 1. You will he paying S 10.000 a year in tuition expenses at the end of the next two years. Bonds currently yield SC. (LO 11-2)
|
|
What is pete mrs of pizza for beer
: What is Pete's MRS of pizza for beer? That is, what is the number of beers that he is willing to give up to get one more pizza?
|
|
Tradeoff in our economic choices
: Why do economic agents face tradeoff in our economic choices (economic decision making) process? How do we make a rational choice among the viable alternatives we have as individuals or business owners?
|
|
Llist some disadvantages of protozoa.
: List some disadvantages of protozoa. Explain in detail.
|
|
List ways that culture in which we live determines happiness
: List three (3) ways that the culture in which we live determines our happiness. Give two (2) examples of ways that you believe culture has affected your own happiness throughout your life.
|