Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
In March 2012, Daniela Motor Financing (DMF), offered some securities for sale to the public. Under the terms of the deal, DMF promised to repay the owner of one of these securities $200 in March 2052, but investors would receive nothing until then. Investors paid DMF $100 for each of these securities; so they gave up $100 in March 2012, for the promise of a $200 payment 40 years later. Required: (a) Assuming that you purchased the bond for $100, what rate of return would you earn if you held the bond for 40 years until it matured with a value $200? (Round your answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) Rate of return % (b) Suppose under the terms of the bond you could redeem the bond in 2022. DMF agreed to pay an annual interest rate of .8 percent until that date. How much would the bond be worth at that time? (Round your answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Bond value $ (c) In 2022, instead of cashing in the bond for its then current value, you decide to hold the bond until it matures in 2052. What annual rate of return will you earn over the last 30 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) Rate of return %
A European put option on the same stock has a strike price of $30, a time to maturity of 1 year, and an implied volatility of 33%.- What is the arbitrage opportunity open to a trader?
Despite increasing revenues over the past three years Whole Foods Market (WFM) has experienced disappointing profits during the same interval. While WFM’s overall revenues increased by approximately 8% in 2015, Opening a series of new supermarkets is..
Rudy Sandberg wants to invest in 5-year bonds that are currently priced at $850.00. The bonds have a coupon rate of 10 percent and semiannual coupon payments. If the par value of the bonds is $1,000, what is the bond's effective annual yield (EAY)?
We have a common stock which has a dividend which grows at 100%for the first 1 year and 200% for the next 1 year. After that it rises more reasonably, but we only know it indirectly. Net profit margin, ATO and financial leverage are .02, 3 and 2 resp..
You deposit $2,500 today in a retirement account at 6% interest compounded annually. How much more money will you have if you leave it in a for 35 years rather than 25 years?
A building owner charges net rent of $20 in the first year, $21 in the second year, and $22 in the third year, but is providing six months of free rent in the first year as a concession. Using a 10 percent discount rate, what is the effective rent ov..
Gingle Co. issued 2 different zero-coupon bonds. Bond A is a junior bond with face value $87 million while Bond B is a senior bond with face value $200 million. The maturity of the debt is 1 year from now. What is the market value of debt?
A bank has $1 million in vault cash, $5 million in short term Treasury securities and $20 million in deposits at a Federal Reserve Bank. Identify the term or concept that fits each description. The interest rate the Fed charges banks for short term l..
What the costs of the Revco bankruptcy will be, and how long you expect before Revco will emerge from bankruptcy. Write your answers in a 850 to 1000-word report and cite your sources.
Consider two projects with the following cash flows: Project S is a 4 year project with initial (time 0) cash outflow of 3000 and time 1 through 4 cash inflows of 1500, 1200, 800 and 300 respectively.
A stock has a beta of 1.15 and an expected return of 13 percent. A risk-free asset currently earns 2.8 percent. a. What is the expected return on a portfolio that is equally invested in the two assets?
Mr. Smith has just invested $20,000 for his son (age 7).- What rate of return will Dr. Stein need to achieve this goal?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd