What is equivalent discount rate for period length of year

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1. How much should you pay for a 1,000 corporate bond with 5 years to maturity, that pays a 8% annual coupon, if the interest rate is 12%?

2. Your bank is offering you a loan with 13% APR with monthly payments. What is the equivalent discount rate for a period length of one year?

3. How much must be invested today in order to generate a five year annuity of 1,500 per year, with the first payment one year from today, at an APR of 12%

4. If a stock paid a dividend of $3.24 and the price at the beginning of the year was $35.67 and at the end of the year the price was $42.67 what was the capital gains yield?

5. If a stock paid a dividend of $3.24 and the price at the beginning of the year was $35.67 and at the end of one year the price was $42.67 what was the dividend yield?

Reference no: EM131359955

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