Reference no: EM132068867
PRICING ZERO COUPON BONDS -
(a) Calculate the price of a zero coupon, $1,000 face value, 5-year bond if the appropriate annual discount rate is 12 percent. Calculate your total return if you hold this bond for three years and the discount rate does not change. (INCLUDE FORMULAS USED TO SOLVE PROBLEM IN EXCEL).
EXPECTED RETURN ON T-BILLS -
(b) 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? (INCLUDE FORMULAS USED TO SOLVE PROBLEM IN EXCEL).
PRICING BONDS AT A DISCOUNT -
(c) Calculate the price of a 5 percent coupon (annual coupons), $1,000 face value, 5-year bond if the appropriate discount rate is 3 percent. Show your return if you hold this bond for two years and its discount rate doesn't change. (INCLUDE FORMULAS USED TO SOLVE PROBLEM IN EXCEL).
ACTUAL RETURN -
(d) What actual return did you earn if you bought a bond for $1,000, sold it a year later for $1,010, and received a $30 annual coupon the day before you sold it? (INCLUDE FORMULAS USED TO SOLVE PROBLEM IN EXCEL).
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?
|
Describe corporate governance-social responsibility
: Describe corporate governance, social responsibility, and the agency problem of Amazon.com. And lay out the policy for each one.
|