Corporate bond fund

Assignment Help Financial Management
Reference no: EM13848961

Assume you deposit $25,000 in a corporate bond fund that pays 3%. What will value or how much money will you have in this mutual fund in 3 years?

Reference no: EM13848961

Questions Cloud

What is the price of the stock today : A company has just paid a dividend of $0.52. Next year's dividend is expected to be 15% higher, after which the dividend will remain the same indefinitely. Assuming shareholders require a rate of return of 20%, what is the price of the stock today?
Intends to make its first dividend payment : Hayden Ltd intends to make its first dividend payment 5 years(s) from now. It then intends to pay dividends annually thereafter. The company has announced it expects the first three dividends to all be of the magnitude of around 5 cents per share.
The future value of an investment will increase : Holding all else constant, the future value of an investment will increase if:
Net income and cash flow are totally unconnected : NI and CF are totally unconnected, and investors care more about NI. NI and CF are certainly positively related, but investors care more about NI. NI and CF are totally unconnected, and investors care more about CF. NI and CF are certainly positively..
Corporate bond fund : Assume you deposit $25,000 in a corporate bond fund that pays 3%. What will value or how much money will you have in this mutual fund in 3 years?
What is the main premise underlying the pecking order theory : What is the main premise underlying the pecking order theory? What is the “pecking order” of sources of financing? Why is dividend policy so important to this theory? How does the concept of financials slack relate to this theory?
Calculate the cost of such a call and price of a derivative : Assume the Black-Schools framework. Let S be a stock such that S(0) = 21, the dividend rate is δ = 0.02, the risk free rate is r = 0.05, and the volatility is σ = 0.2. Calculate the expected payoff of a 6 month call with strike price 17. Calculate th..
Corporate insiders earn abnormal profits on their trades : Do empirical studies support or reject the notion that corporate insiders earn abnormal profits on their trades? What about outside investors who mimic their trades? What forms of market efficiency, if any, are supported by these studies?
What will your monthly payments be : You want to buy a new sports coupe for $46,069, and the finance office at the dealership has quoted you an 8.4% APR loan for 5 years with monthly payments. What will your monthly payments be?

Reviews

Write a Review

Financial Management Questions & Answers

  How much should save each month

Sarah wants to go buy a house in Hawaii 15 years from now. She estimates she'll need $400,000 at that time to make this purchase. She plans to save each month at the end of the month for the next 15 years, and invest it at a rate of 8% a year, compou..

  About the excess capacity

Walter Industries has $8 billion in sales and $1.3 billion in fixed assets. Currently, the company's fixed assets are operating at 95% of capacity. What level of sales could Walter Industries have obtained if it had been operating at full capacity? W..

  Differences between stand-alone risk-diversifiable risk

Suppose an individual investor starts with a portfolio that consists of one randomly selected stock. What will happen to the portfolio’s risk if more and more randomly selected stocks are added? Explain the differences between stand-alone risk, diver..

  Report annual cash flows

Briefly explain why you are using the computational method chosen. (Hint: you will need to decide to use the APV or WACC formula.

  Prepare next years financial plan and operational budget

Prepare next year's financial plan and operational budget. How the new services will impact revenue. Increase in revenue reimbursement.

  Undertaking a major investment

Company Omega is undertaking a major investment. It is expected to cost 1 million in initial investment at t = 0,  1 million at t = 1 and  1 million at t =2. The investment is expected to generate at the end of year t = 2 a dividend flow of 1.0 milli..

  Present value of growth opportunities

Huron Manufacturing plans to pay a dividend of $5 per share. The growth rate is 7 percent and the discount rate is 12 percent. What is the present value of growth opportunities (PVGO)?

  Fixed-rate mortgage-pay off any remaining loan balance

You need a 30-year, fixed-rate mortgage to buy a new home for $225,000. Your bank will lend you the money at an APR of 5.5 percent with monthly compounding. You can only afford monthly payments of $1,000 for principal and interest, so you offer to pa..

  What is the cost of equity for this firm

The common stock of Contemporary Interiors has a beta of 1.65 and a standard deviation of 27.4 percent. The market rate of return is 13.2 percent and the risk-free rate is 4.8 percent. What is the cost of equity for this firm?

  What is the dollar amount of dividends

Lee purchased a stock one year ago for $25. The stock is now worth $30, and the total return to Lee for owning the stock was 0.36. What is the dollar amount of dividends that he received for owning the stock during the year?

  Constant growth valuation-what stock price is expected

Woidtke Manufacturing's stock currently sells for $24 a share. The stock just paid a dividend of $3.50 a share (i.e., D0 = $3.50), and the dividend is expected to grow forever at a constant rate of 10% a year. What stock price is expected 1 year from..

  Wilson wonders bonds have 12 years remaining to maturity

wilson wonders bonds have 12 years remaining to maturity. interest is paid annually the bonds have a 1000 par value and

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