a savings account earning

You have decided to place $338 in equal deposits every month at the beginning of the month into a savings account earning 11.13 percent per year, compounded monthly for the next 9 years. The first deposit is made today. How much money will be in the account at the end of that time period?

Round the answer to two decimal places.

Answer:

Question 2					0 / 1 point

What is the present value of the following annuity?
$667 every half year at the beginning of the period for the next 4 years, discounted back to the present at 4.68 percent per year, compounded semiannually.

Round the answer to two decimal places.

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Question 3					1 / 1 point

You plan to buy a house in 5 years. You want to save money for a down payment on the new house. You are able to place $493 every month at the end of the month into a savings account at an annual rate of 4.18 percent, compounded monthly. How much money will be in the account after you made the last payment?

Round the answer to two decimal places.

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Question 4				0 / 1 point

You are going to save money for your son’s education. You have decided to place $1,853 every half year at the end of the period into a saving account earning 4.80 percent per year, compounded semi-annually for the next 5 years. How much money will be in the account at the end of that time period?

Round the answer to two decimal places.

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Question 5					0 / 1 point

A car dealership offers you no money down on a new car. You may pay for the car for 3 years by equal monthly end-of-the-month payments of $845 each, with the first payment to be made one month from today. If the discount annual rate is 3.63 percent compounded monthly, what is the present value of the car payments?

Round the answer to two decimal places.

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Question 6					0 / 1 point

What is the present value of the following annuity?
$3,263 every quarter year at the end of the quarter for the next 6 years, discounted back to the present at 17.99 percent per year, compounded quarterly?

Round the answer to two decimal places.

Answer:

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For a bond selling for $963, with a par value of $1,000 and a coupon rate of 12.46 percent, the current yield is _____.

Round the answer to two decimal places in percentage form. (Write the percentage sign in the “units” box)

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Question 2								0 / 1 point

You paid $1,076 for a corporate bond that has a 16.84 percent coupon rate. What is the bond’s current yield?

Round the answer to two decimal places in percentage form. (Write the percentage sign in the “units” box)

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Question 3								0 / 1 point

A $1,000 par value bond with a 5.01 percent coupon rate, currently selling for $989, has a current yield of _____.

Round the answer to two decimal places in percentage form. (Write the percentage sign in the “units” box)

Answer:

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What is the yield to maturity of a 11-year bond that pays a coupon rate of 12.57 percent per year, has a $1,000 par value, and is currently priced at $1,330? Assume annual coupon payments.

Round the answers to two decimal places in percentage form. (Write the percentage sign in the “units” box).

You should use Excel or financial calculator.

 

 

Answer:

Problem 5

 

Blue Crab, Inc. plans to issue new bonds, but is uncertain how the market would set the yield to maturity. The bonds would be 21-year to maturity, carry a 8.83 percent annual coupon, and have a $1,000 par value. Blue Crab, Inc. has determined that these bonds would sell for $733 each. What is the yield to maturity for these bonds?

Round the answers to two decimal places in percentage form. (Write the percentage sign in the “units” box).

You should use Excel or financial calculator.

 

 

Answer:

Problem 12-2 YTM semiannually

 

Fresh Fruit, Inc. has a $1,000 par value bond that is currently selling for $819. It has an annual coupon rate of 6.64 percent, paid semiannually, and has 21-years remaining until maturity. What would the annual yield to maturity be on the bond if you purchased the bond today and held it until maturity?

Round the answer to two decimal places in percentage form. (Write the percentage sign in the “units” box)

You should use Excel or financial calculator.

Answer:

Problem 12-4 YTM semiannually

 

A few years ago, Spider Web, Inc. issued bonds with a 12.40 percent annual coupon rate, paid semiannually. The bonds have a par value of $1,000, a current price of $930, and will mature in 20 years. What would the annual yield to maturity be on the bond if you purchased the bond today?

Round the answer to two decimal places in percentage form. (Write the percentage sign in the “units” box)

You should use Excel or financial calculator.

Answer:

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Marco Chip, Inc. just issued zero-coupon bonds with a par value of $1,000. The bond has a maturity of 25 years and a yield to maturity of 14.52 percent, compounded semi-annually. What is the current price of the bond?

Round the answer to two decimal places.

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Question 2					0 / 1 point

Black Water Corp. just issued zero-coupon bonds with a par value of $1,000. The bond has a maturity of 25 years and a yield to maturity of 13.54 percent, compounded annually. What is the current price of the bond?

Round the answer to two decimal places.

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Question 3					0 / 1 point

11 years ago, Mini Max Inc. issued 30 year to maturity zero-coupon bonds with a par value of $1,000. Now the bond has a yield to maturity of 14.39 percent, compounded semi-annually. What is the current price of the bond?

Round the answer to two decimal places.

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Question 4					0 / 1 point

28 years ago, Blue Lake Corp. issued 30 year to maturity zero-coupon bonds with a par value of $5,000. The bond has current yield to maturity of 5.68 percent, compounded annually. What is the current price of the bond?

Round the answer to two decimal places.

Answer:

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What is the yield to call of a 30-year to maturity bond that pays a coupon rate of 14.81 percent per year, has a $1,000 par value, and is currently priced at $915? The bond can be called back in 6 years at a call price $1,076. Assume annual coupon payments.

Round the answer to two decimal places in percentage form. (Write the percentage sign in the “units” box)

You should use Excel or financial calculator.

Answer:

Question 2								0 / 1 point

Bright Sun, Inc. sold an issue of 30-year $1,000 par value bonds to the public. The bonds had a 7.14 percent coupon rate and paid interest annually. It is now 19 years later. The current market rate of interest on the Bright Sun bonds is 8.78 percent. What is the current market price (intrinsic value) of the bonds?

Round the answer to two decimal places.

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Question 3					0 / 1 point

21 years ago, Delicious Mills, Inc. issued 30-year to maturity bonds that had a 9.16 percent annual coupon rate, paid semiannually. The bonds had a $1,000 face value. Since then, interest rates in general have changed and the yield to maturity on the Delicious Mills bonds is now 9.03 percent. Given this information, what is the price today for a Delicious Mills bond?

Round the answer to two decimal places.

Answer:

YTM after original issue

 

Dan is considering the purchase of Super Technology, Inc. bonds that were issued 3 years ago. When the bonds were originally sold they had a 24-year maturity and a 6.19 percent coupon interest rate, paid annually. The bond is currently selling for $882. Par value of the bond is $1,000. What is the yield to maturity on the bonds if you purchased the bond today?

Round the answers to two decimal places in percentage form. (Write the percentage sign in the “units” box).

You should use Excel or financial calculator.

Answer:

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Assume that today’s date is February 15, 2015. Robin Hood Inc. bond is an annual-coupon bond. Par value of the bond is $1,000.  How much you will pay for the bond if you purchased the bond today? The answer should be calculated to two decimal places

 

Company	Price	Coupon Rate	Maturity Date	YTM	Current Yield	Rating
Robin Hood	105.351	8.895	2-15- 2035	–	–	D

Answer:

Question 2					0 / 1 point

Assume that today’s date is February 15, 2015. Robin Hood Inc. bond is an annual-coupon bond. Par value of the bond is $1,000.  Calculate annual coupon interest payments.

 The answer should be calculated to two decimal places

 

Company	Price	Coupon Rate	Maturity Date	YTM	Current Yield	Rating
Robin Hood	119.751	7.402	2-15- 2038	–	–	D

Answer:

Question 3					0 / 1 point

Assume that today’s date is February 15, 2015. Robin Hood Inc. bond is an annual-coupon bond. Par value of the bond is $1,000.  Calculate the bond’s current yield.

 Round the answers to two decimal places in percentage form. (Write the percentage sign in the “units” box).

 

Company	Price	Coupon Rate	Maturity Date	YTM	Current Yield	Rating
Robin Hood	101.688	6.042	2-15- 2022	–	?	D

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Question 4								0 / 1 point

Assume that today’s date is April 15, 2015. Fresh Bakery Inc. bond is an annual-coupon bond. Par value of the bond is $5,000.

How much you will pay for the bond if you purchased the bond today?  The answer should be calculated to two decimal places

 

Company	Price	Coupon Rate	Maturity Date	YTM	Current Yield	Rating
Fresh Bakery	112.667	8.987	04-15- 2021	–	–	AA

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Question 5					0 / 1 point

Assume that today’s date is April 15, 2015. Fresh Bakery Inc. bond is an annual-coupon bond. Par value of the bond is $5,000.

Calculate annual coupon interest payments.  The answer should be calculated to two decimal places

 

Company	Price	Coupon Rate	Maturity Date	YTM	Current Yield	Rating
Fresh Bakery	95.159	11.380	04-15- 2039	–	–	AA

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Question 6					0 / 1 point

Assume that today’s date is April 15, 2015. Fresh Bakery Inc. bond is an annual-coupon bond. Par value of the bond is $5,000.

Calculate the bond’s current yield.

 Round the answers to two decimal places in percentage form. (Write the percentage sign in the “units” box).

 

 

Company	Price	Coupon Rate	Maturity Date	YTM	Current Yield	Rating
Fresh Bakery	116.862	11.620	04-15- 2025	–	?	AA

Answer:

The last dividend of Delta, Inc. was $11.71, the growth rate of dividends is expected to be 2.04 percent, and the required rate of return on this stock is 8.49 percent. What is the stock price according to the constant growth dividend model?

Round the answer to two decimal places.

Answer:

Question 2					1 / 1 point

The next year the common stock of Gold Corp. will pay a dividend of $9.41 per share. If the company is growing at a rate of 4.91 percent per year, and your required rate of return is 10.25 precent, what is Gold’s company stock worth to you?

Round the answer to two decimal places.

Answer:

176.22
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The Black Forest Cake Company just paid an annual dividend of $3.20. If you expect a constant growth rate of 2.79 percent, and have a required rate of return of 10.60 percent, what is the current stock price according to the constant growth dividend model?

Round the answer to two decimal places.

Answer:

42.12
Question 4				1 / 1 point

You are considering the purchase of a share of Alfa Growth, Inc. common stock. You expect to sell it at the end of one year for $86.85 per share. You will also receive a dividend of $3.02 per share at the end of the next year. If your required return on this stock is 13.11 percent, what is the most you would be willing to pay for Alfa Growth, Inc. common stock now?

Round the answer to two decimal places.

Answer:

79.45
Question 5				0 / 1 point

Green Company’s common stock is currently selling for $67.64 per share. Last year, the company paid dividends of $3.82 per share. The projected growth at a rate of dividends for this stock is 3.01 percent. Which rate of return does the investor expect to receive on this stock if it is purchased today?

Round the answer to two decimal places in percentage form. (Write the percentage sign in the “units” box).

Answer:

Question 6								0 / 1 point

Digging Deep Company’s common stock is currently selling for $128.50 per share. Next year, the company dividend is expected to be $11.86 per share. The projected growth at a rate of dividends for this stock is 3.29 percent per year. What rate of return does the investor expect to receive on this stock if he or she purchases the stock today?

Round the answer to two decimal places in percentage form.(Write the percentage sign in the “units” box).

Answer:

Question 1								0 / 1 point

King Farm Manufacturing Company’s common stock has a beta of 1.37. If the risk-free rate is 2.73 percent, and the market return is 6.68 percent, calculate the required return on King Farm Manufacturing’s common stock.

Round the answers to two decimal places in percentage form. (Write the percentage sign in the “units” box)

Answer:

Question 2								0 / 1 point

Try to determine the required rate of return on Tilden Woods Corporation’s common stock. The firm’s beta is 1.03. The rate on a 10-year Treasury bond is 2.68 percent, and the market risk premium is 7.88 percent.

Round the answers to two decimal places in percentage form. (Write the percentage sign in the “units” box)

Answer:

Question 3								0 / 1 point

You hold a portfolio with the following securities:

Security	Percent of portfolio	Beta
Stock A	47%	0.71
Stock B	16%	0.87
Stock C	Please calculate it	0.87

Calculate the beta portfolio.

Round the answers to two decimal places.

Answer:

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John invested the following amounts in three stocks:

Security	Investment	Beta
Stock A	$657,010	2.23
Stock B	$887,059	1.72
Stock C	$627,561	2.49

Calculate the beta portfolio.

Round the answers to two decimal places.

Answer:

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Jack holds a portfolio with the following securities:

Security	Investment	Return
Stock A	645,976	-7.6%
Stock B	489,508	5.5%
Stock C	837,282	4.4%

Calculate the expected return of portfolio. Round the answers to two decimal places in percentage form. (Write the percentage sign in the “units” box)

Answer:

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You hold a portfolio with the following securities:

Security	Percent of portfolio	Return
Stock A	55%	-4.3%
Stock B	17%	14.9%
Stock C	Please calculate it	3.1%

Calculate the expected return of portfolio. Round the answers to two decimal places in percentage form

Answer:

Question 1								0 / 1 point

Calculate the expected return on stock of Time Saver Inc.:

State of the economy	Probability of the states	Percentage returns
Economic recession	18%	7.5%
Steady economic growth	40%	3.4%
Boom	Please calculate it	-1.4%

Round the answers to two decimal places in percentage form. (Write the percentage sign in the “units” box)

Answer:

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Calculate the expected standard deviation on stock:

State of the economy	Probability of the states	Percentage returns
Economic recession	26%	-2%
Steady economic growth	39%	7%
Boom	Please calculate it	13%

 

Round the answers to two decimal places in percentage form. (Write the percentage sign in the “units” box)

Answer:

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The prices for the White Swan Corporation for the first quarter of the last year are given below. Find the holding period return (percentage return) for February.

End of the month	Stock price
January	107.85
February	98.41
March	108.74

Round the answers to two decimal places in percentage form. (Write the percentage sign in the “units” box)

Answer:

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You purchased 100 shares of General Motors stock of at a price of $105.39 one year ago. You sold all stocks today for $105.56. During the year, the stock paid dividends of $5.02 per share. What is your holding period return?

Round the answers to two decimal places in percentage form. (Write the percentage sign in the “units” box)

Answer:

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Sarah purchased 100 shares of General Electric stock of at a price of $67.03 three months ago. She sold all stocks today for $65.92. During the year the stock paid dividends of $2.51 per share. What is Sarah’s holding period return

Round the answers to two decimal places in percentage form. (Write the percentage sign in the “units” box)

Answer:

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You purchased 250 shares of General Motors stock of at a price of $83.27 two years ago. You sold all stocks today for $72.08. During this period the stock paid dividends of $4.04 per share. What is your annualized holding period return (annual percentage rate)?

Round the answers to two decimal places in percentage form. (Write the percentage sign in the “units” box)

Answer:

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You purchased 300 shares of General Electric stock of at a price of $66.25 four years ago. You sold all stocks today for $74.30. During that period the stock paid dividends of $1.86 per share. What is your annualized holding period return (annual percentage rate)?

Round the answers to two decimal places in percentage form. (Write the percentage sign in the “units” box)

Answer:

Question 6								0 / 1 point

John purchased 100 shares of Black Forest Inc. stock of at a price of  $157.52 three months ago. He sold all stocks today for  $157.60. During this period the stock paid dividends of  $5.46 per share. What is John’s annualized holding period return (annual percentage rate)?

Round the answers to two decimal places in percentage form. (Write the percentage sign in the “units” box)

Answer:

Question 7								0 / 1 point

Mary purchased 100 shares of Sweet Pea Co. stock at a price of $45.17 six months ago. She sold all stocks today for $47.70. During that period the stock paid dividends of $1.51 per share. What is Mary’s effective annual rate?

Round the answers to two decimal places in percentage form. (Write the percentage sign in the “units” box)

Answer:

Question 8								0 / 1 point

Tom purchased 100 shares of Dalia Co. stock of at a price of $124.04 four months ago. He sold all stocks today for $124.77. During the year the stock paid dividends of $5.65 per share. What is Tom’s effective annual rate?

Round the answers to two decimal places in percentage form. (Write the percentage sign in the “units” box)

Answer: