What is the approximate yield to call

Reference no: EM13859878

Question 1) What is the approximate yield to call of a 10% coupon rate, $1,000 par value bond, currently priced at $1200, if the call can be made in seven years at a price of $1,025?

Question 2) A convertible bond has a face value of $1,000 and the conversion price is $60 per share. The stock is selling at $25 per share. The bond pays $85 per year in interest and is selling in the market for $945. It matures in seven years. Market rates are 10% annually.

(I) What is the conversion ratio?
(II) What is the conversion value?

Question 3) If a $100,000 Treasury bond futures contract changes by 15/32, what is the dollar change?

Question 4) A shopping center has an annual net operating income of $1,050,000 and a capitalization rate of 8%. What is its value?

Question 5) An investment has the following range of outcomes and probabilities.

Outcomes (Percent)       Probabilities of Outcomes
6%          .25
9%          .50
10%        .25

Calculate the expected value and the standard deviation (round to two places after the decimal point where necessary).A.
Expected value = 8.50
Standard deviation = 1.50
Refer to Equation 17-1
Ki            Pi            ∑KiPi
6%          .25          1.50
9%          .50          4.50
10%        .25          2.50
                                ∑KiPi 8.50

Question 6) A mutual fund i et up to charge a load. Its net asset value is $17.70 and its offer price is $18.60. What is the dollar value of the load (commission)?

Reference no: EM13859878

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