Get college assignment help at uniessay writers General Electric made a coupon payment yesterday on its 6.75% bonds that mature in 8.5 years. If the required return on these bonds is 8% APR, what should be the market price of these bonds?
2. Mark and Todd agree that a ratio analysis can provide a measure of the company’s performance. They have chosen Boeing as an aspirant company. would you choose Boeing as an aspirant company? why or why not? There are other aircraft manufacturers S
as of i5 december 2009,calculate the total realised yieldfor Bond A ,which is held by the investor and bond B which is consideredfor a pure yield pick up swap.use semi annual compuonding and reinvestment rate 0f 4.5%.ASSUME there is no gain or loss on the sale of bond A .the total proceeds from bond A,including accrued interest will be invested in Bond b .both Bonds are from AA rated companies bond COUPON BID ASK YTM MATURITY A 11.125 100.375 100.625 11.02 15/12/2010 B 11.75 102.25 102.25 11.33 15/12/2010
You purchase 1,000 shares of Spears Grinder, Inc. stock for $45 per share. A year later, the stock pays a dividend of $1.25 per share, and it sells for $49. a. Calculate your total dollar return. b. Calculate your total percentage return c. Do the answers to parts (a) and (b) depend on whether you sell the stock after one year or continue to hold it?
Use the data below to calculate the standard deviation of nominal and real Treasury Bill returns from 1972-1982. Do you think that when they purchased T-bills, investors expected to earn negative real returns as often as they did during this period? If not, what happened that took investors by surprise? Year Nominal Return (%) Real Return (%) 1972 3.8 0.4 1973 6.9 -1.7 1974 8.0 -3.7 1975 5.8 -1.1 1976 5.1 0.3 1977 5.1 -1.5 1978 7.2 -1.7 1979 10.4 -2.6 1980 11.2 -1.0 1981 14.7 5.3 1982 10.5 6.4
suppose a ten year, $1000 bond with an 8.5% coupon rate and semiannual coupons is trading for a price of $1035.00 what is the bond’s yield to maturity (express as an APR with semiannual compounding)?
suppose a ten year, $1,000 bond with an 8.5% coupon rate and semiannual coupons is trading for a price of $1035.00. what is the bond’s yield to maturity (express as an APR with semiannual compounding)?
A bond currently sells for $1,050, which gives it a yield to maturity of 6%. Suppose that if the yield increases by 25 basis points, the price of the bond falls to $1,025. What is the duration of this bond?
Is the decrease in a bond’s price corresponding to an increase in its yield to maturity more or less than the price increase resulting from a decrease in yield of equal magnitude?
A bond with a 12 percent quarterly coupon rate has a yield to maturity of 16 percent. The bond has a par value of $1,000 and matures in 20 years.Based on this information, a fair price of this bond is $_____
Get college assignment help at uniessay writers A company is considering whether to issue coupon bearing bonds or zero coupon bonds. The YTM on either bond issue will be 7.5 percent. The coupon bond would have a 7.5 percent coupon rate. The company’s tax rate is 35 percent. How many of the coupon bonds must the company issue to raise 40 million dollars? How many zero coupon bonds must it issue?
A portfolio has 180 shares of Stock A that sell for $45 per share and 140 shares of Stock B that sell for $27 per share. The weight of A is and the weight of B is?
An analyst has modeled the stock of Crisp Trucking using a two-factor APT model. The risk-free rate is 6%, the expected return on the first factor (r1) is 12%, and the expected return on the second factor (r2) is 8%. If bi1 = 0.7 and bi2 =0.9, what is Crisp’s required return?
“Mullineaux Corporation has a target capital structure of 53 percent common stock, 4 percent preferred stock, and 43 percent debt. Its cost of equity is 14 percent, the cost of preferred stock is 7.5 percent, and the cost of debt is 8.5 percent. The relevant tax rate is 33 percent. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16)) (a) Mullineaux’s WACC is______ percent.” What is the WACC?
Titan Mining Corporation has 17 million shares of common stock outstanding, 810,00 shares of 7 percent preferred stock outstanding, and 230,000 8.5 percent semiannual bond outstanding, par value $1,000 each. The common stock currently sells for $35 per share and has a beta of 1.25, the preferred stock currently sells for $83 per share, and the bond have 16 years to maturity and sell for 91 percent of par. The market risk premium is 10 percent, T-bill are yielding 5 percent, and Titan Mining’s tax rate is 32 percent. a) The firm’s market value capital structure is as follows: D/V is______, E/V is _______, and P/V is________. b) If Titan Mining is evaluating a new investment project that has the same risk as the firm’s typical project, the firm should use a rate of ______ percent to discount the project’s cash flows.
if the bank finds that the ROE is too low because it has too much bank capital ,what can it do to raise its ROE?
i need the answers to questions 1-25 that you have listed above thank you.
Suppose a new investment opportunity offers a 14 percent rate of return. Is this an attractive project to an ongoing firm if the firm can finance the project with 100 percent debt at an 11 percent interest rate?
Genetech has $2,000,000 in assets, has decided to finance 30 percent with long-term financing (13 percent rate) and 70 percent with short-term financing (9 percent) rate. What will be their annual interest costs? I know the answer is $204,000 i just wanted to learn how to solve it. Mahalo
an 8 percent preferred stock sells for 54 dollars. what is the rate of return?
2. Explain why the Markowitz efficient frontier must be concave.
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