What is the bond equivalent yield

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Reference no: EM132465400

(HW submissions must be individual and handwritten. Your name and section code must be written clearly at the top-right corner of the cover sheet.)

  1. Log on to finance.yahoo.com and enter the ticker symbol "RRD" in the Get Quotes Box to find information about R. R. Donnelley & Sons.
  2. Click on company Profile. What is RRD's main line of business?
  3. Go to Statistics. How many shares of the company's stock are outstanding? What
  4. is the total market value of the firm? What were its profits in the most recent
  5. fiscal year?
  6. Look up Holders of the company's stock. Which are the top 5 institutional
  7. holders of RRD? Which are the top 2 mutual fund holders of RRD?
  8. Now go to Analysis. What is the average analysts' price target for the firm (i.e.
  9. the predicted price of RRD shares)? What is the actual price? Why the
  10. difference?
  11. Next go to Historical Data. What is the highest open and lowest close price of
  12. RRD beginning September 30, 2017.
  13. Repeat all above step (1a to 1e) for Apple (ticker symbol "AAPL")
  14. Suppose you had $1000 to invest on September 30, 2016 and you had the option of choosing either AAPL or RRD or a combination of the two (example: 5% in AAPL and 95% in RRD; or 80% in AAPL and 20% in RRD; i.e. in general x% in AAPL and y% in RRD where x%+y%=100%). How would you invest the $1000? Why?
  15. If the bank discount rate on a 90-day T-Bill with par value of $10,000 is 6%, then:
  16. What is the price of the T-Bill?
  17. What is the bond equivalent yield?
  18. What is the effective annual yield?

Reference no: EM132465400

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