How much will you have in your account on october

Assignment Help Finance Basics
Reference no: EM131148597

Homework

Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link in the course shell. This homework assignment is worth 100 points.

Assume that you are nearing graduation and have applied for a job with a local bank. The bank's evaluation process requires you to take an examination that covers several financial analysis techniques. Use the following information for Questions 1 through 2:

1. What is the present value of the following uneven cash flow stream -$50, $100, $75, and $50 at the end of Years 0 through 3? The appropriate interest rate is 10%, compounded annually.

2. Suppose that on January 1 you deposit $100 in an account that pays a nominal (or quoted) interest rate of 11.33463%, with interest added (compounded) daily. How much will you have in your account on October 1, or 9 months later?

Use the following information for Questions 3 and 4:

A firm issues a 10-year, $1,000 par value bond with a 10% annual coupon and a required rate of return is 10%.

3. What is the yield to maturity on a 10-year, 9% annual coupon, $1,000 par value bond that sells for $887.00? That sells for $1,134.20? What does a bond selling at a discount or at a premium tell you about the relationship between rd and the bond's coupon rate?

4. What are the total return, the current yield, and the capital gains yield for the discount bond in Question #3 at $887.00? At $1,134.20? (Assume the bond is held to maturity and the company does not default on the bond.)

Reference no: EM131148597

Questions Cloud

Which force is the most difficult for managers to control : In Chapter One, we briefly explored forces that determine the health of a population (i.e., heredity, medical services, environments, and lifestyle). Discuss at least three forces that effect health and well-being in the community where Bryan College..
Finding ways to motivate employees : Develop a scenario illustrating how you, in your role as a manager, might use motivational concepts to create an environment where your employees are motivated and satisfied with their jobs. Be sure to include potential challenges you may face and..
Provide one example of the effect that supports your claim : From the e-Activity, determine whether stock prices are affected more by long-term or short-term performance. Provide one example of the effect that supports your claim.
When acting on applications for medical staff privileges : When acting on applications for medical staff privileges, both government-owned and private hospitals must provide procedural due process. Under common-law principles, for many years private hospitals were essentially free of court intervention in de..
How much will you have in your account on october : Suppose that on January 1 you deposit $100 in an account that pays a nominal (or quoted) interest rate of 11.33463%, with interest added (compounded) daily. How much will you have in your account on October 1, or 9 months later?
How much of the net income is allocated to yolanda : avier and Yolanda have original investments of $50,000 and $100,000, respectively, in a partnership.- How much of the net income of $77,000 is allocated to Yolanda?
Limit medical mistakes and reduce their potential liability : You are the risk manager of a hospital and have been asked to make a speech to doctors and nurses about how to prevent malpractice claims. Draft a speech outlining the guidelines and best practices for healthcare providers to limit medical mistakes a..
Planning at higher levels in healthcare organizations : How does planning at higher levels in healthcare organizations (HCOs) differ from and planning at lower levels in HCOs. Similarly, which aspects of planning at higher levels in HCOs are similar to planning at lower levels in HCOs. Provide at least on..
Similarities between manufacturing and service environments : A foundation of operations in both manufacturing and service environments is vital in order to drive inefficiencies and examine ways to achieve greater supply chain integration with suppliers and customers.  If not, how would you implement flexibilit..

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Estimate the capital required under basel i for a bank that

estimate the capital required under basel i for a bank that has the following transactions with another bank. assume no

  Find the present value of both annuities

Find the future value of both annuities at the end of year 10, assuming that Marian can earn and find the present value of both annuities, assuming that Marian can earn

  The 1-year libor rate is 10% with annual compounding

The 1-year LIBOR rate is 10% with annual compounding. A bank trades swaps where a fixed rate of interest is exchanged for 12-month LIBOR with payments being exchanged annually. The 2- and 3-year swap rates (expressed with annual compounding) are 11% ..

  Miller corporation has a premium bond making semiannual

miller corporation has a premium bond making semiannual payments. the bond pays a coupon of 12 percent has a ytm of 10

  Explanation to financial analysis question

Find out the net cash proceeds from the disposal of old and new equipment. What is the resale value of new equipment that would make you indifferent about project?

  Break even point for operating expanses

Highland Cable Corporation is planning an expansion of its facilities. Highland Cable is currently financed with 50% debt and 50% equity common stock par value of $10.

  Hypothesis testing to analyze the same set of data

Hypothesis testing to analyze the same set of data.

  Potential customers for product or service

Who could be your potential customers for this product or service? Who could be your potential competitors for this product or service?

  Compute a fair rate of return for intel common stock

Compute a fair rate of return for Intel common stock, which has a 1.2 beta. The risk-free rate is 6 percent, and the market portfolio (New York Stock Exchange stocks) has an expected return of 16 percent.

  Determine present value

Determine, for each of the perpetuities: a. The appropriate present value interest factor. b. The present value.

  Explain the benefits and risks of debt financing

If Touring Enterprises were to increase the percentage of debt in its capital structure, what would happen to the WACC ? No calculation is necessary- simply provide a short, non-numeric response.

  What will be the change in the percentage terms

A corporate bond with a 7.100 percent coupon has eleven years left to maturity. It has had a credit rating of BB and a yield to maturity of 8.9 percent. The firm has recently become more financially stable and the rating agency is upgrading the bo..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd