Reference no: EM133072042
Questions -
Q1. A 30 year Treasury Bond is issues with par value of $1,000, paying interest of $80 per year. If market yields increase shortly after the T bond is issues, what happens to the bond's:
-Coupon rate
-Price
-Yield to maturity
-Current yield
Q2. A bond with a par value of $1,000 has a current yield of 7.5% and a coupon rate of 8%. What is the bond's price?
Q3. One bond has a coupon rate of 8%, another a coupon rate of 12%. Both bonds have 10 year maturities and sell at a yield to maturity at 10%. If the yield to maturity next year are still 10%, what is the rate of return on each bond? Does the higher coupon bond give a higher rate of return?
Q4. A 6 year Circular File Bond pays interest of $80 annually and sells for $950. What is the coupon rate, current yield, and yield to maturity?
Q5. A General Motors Bond carries a coupon rate of 8%, has 9 years until maturity, and sells at a yield to maturity of 9%.
-What interest payments do bond holders receive each year?
-At what price does the bond sell (Assume annual interest payments)?
-What happens to the bond price if the yield to maturity falls to 7%?
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Find the weights of each asset in the portfolio
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Compute the present value
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How much will the levered beta be after change
: The firm currently has a cost of equity of 9% and is thinking about borrowing $200 million at 5%(pre-tax) and buying back shares.
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How much would you need to deposit today
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What is the coupon rate and current yield
: A 6 year Circular File Bond pays interest of $80 annually and sells for $950. What is the coupon rate, current yield, and yield to maturity
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Find the beta of stock
: Consider the following two scenarios for the economy and the expected returns in each scenario for the market portfolio, an aggressive stock A, and a defensive
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What is the percentage change in the real value
: The New Zealand dollar value changed from US$ 0.64 (US$ 0.64 = NZ$ 1) at the beginning of the year to US$ 0.63 at the end of the year. The US inflation is 2% an
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Compute diluted earnings per share
: Green Enterprises issued, at par, 40, $2,500. 12% bonds, each convertible into 100 shares of common stock. Compute diluted earnings per share
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Estimated intrinsic value using multistage fcff method
: What it the estimated intrinsic value using the multistage FCFF method? State your answer as a dollar amount with two decimal places.
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