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What is the yield to maturity of five year zero coupon

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Reference no: EM131188191

1. What is the price of a $100 face value , 4year, zero -coupon bond if the market rate of interest of such risk free -zero coupon bonds is 5.95%

2. Consider a ten year bond with a face value of $1000 that has a coupon rate of 5.5%, with semiannual payments.

a. What is the coupon payment for this bond?

b. Draw the cash flows for the bond on a timeline.

3. What is the yield to maturity (YTM) of a 5 year zero coupon, $100 face value bond which is currently priced at $74.55?

4. Credenza Industries is expected to pay a dividend of $1.20 at the end of the coming year. It is expected to sell for $62.00 at the end of the year. If its equity cost of capital is 8%, what is the price you would pay for this stock now?

5. Coolibah Holdings is expected to pay dividends of $1.20 every six months for the next three years. If Coolibah's equity cost of capital is 16% and its price at the end of the 3 years is expected to be $26.74, how much would you pay for it now?

Reference no: EM131188191

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