Reference no: EM13731326
1. You have $1,395 today, and want to double your money in 7 years. What interest rate must you earn to achieve your goal?
Enter rate in percents, accurate to two decimal places.
2. The house you want to buy costs $260 thousand. You plan to make a cash down payment of 10 percent, and borrow the rest in a 30 year mortgage at 4.8 percent APR. What will be the amount of your monthly mortgage payment?
3. You estimate that you will need $716 thousand in 30 years to buy some cybernetic body enhancements, including infrared vision, retractable claws, and expanded brain storage capacity. To achieve your financial goal, you want to make three equal-sized deposits into an account paying a fixed rate of 11.78%. The first deposit will be made right now, the second 10 years from now, and the third 20 years from now. What is the size of each deposit you need to make in order to partake of future cybernetic goodness? (Hint: draw this out on a timeline.)
4. The Great White Whale Co. wants to issue zero coupon bonds with $1000 face value and 100 years to maturity. If your required return is 8.3 percent per year, how much would you be willing to pay for one of these bonds today?
5. Your mortgage statement says that your loan is at 8.61 percent APR, with monthly payments. What is the effective annual rate on your mortgage (i.e., taking into account the monthly compounding)? Enter answer in percents, accurate to two decimal places.
6. You are being offered an investment that will pay you (and your heirs) $19,853 per year forever, starting 16 years from now. If your discount rate on this investment is 5.8 percent, how much would you be willing to pay for it today?
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Risk-free rate and market risk is premium
: Risk-free rate is 3% and that the market risk is premium is 5%. What is the required rate of return on a stock with a beta of 0.9? What is the required rate of return on a stock with a beta of 2.1? What is the required return on the market?
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Effectiveness of any compensation system to attract
: The effectiveness of any compensation system to attract, retain and align employee behavior and performance with the objectives of the enterprise is dependent upon management credibility. If you were advising a CEO on steps he or she could take to en..
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Remaining life and current values of the bonds
: The older bonds have a face value of $100,000 each and pay 18% in semi-annual instalments. They have an early call provision for a 5% premium over face value. The bonds were sold 8 years ago and have a 12-year term.
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Calculate bond yield to maturity if its current market price
: (Yield to maturity) Citigroup has outstanding an issue of $1,000.00 face value, 8.45% coupon bonds which mature in 16 years. Calculate the bond's yield to maturity if its current market price is. 800, 1, 000, 1,150 1,300
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What will be the amount of your monthly mortgage payment
: The house you want to buy costs $260 thousand. You plan to make a cash down payment of 10 percent, and borrow the rest in a 30 year mortgage at 4.8 percent APR. What will be the amount of your monthly mortgage payment?
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Firm recently purchased a new facility costing
: A firm recently purchased a new facility costing $984 thousand. The firm financed this purchase with an amortized loan at an interest rate of 8.8 percent APR, with monthly payments of $23.9 thousand. How long will it take to pay off this loan?
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About the current liabilities
: Which of the following are included in current liabilities?
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Statements concerning liquidity
: Which one of the following statements concerning liquidity is correct?
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Cash flow of firm also referred to as cash flow from assets
: The cash flow of a firm, also referred to as cash flow from assets, must be equal to the cash flow to:
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