Reference no: EM133021662
Questions -
Q1. Assume that you are considering the purchase of a 15-year bond with an annual coupon rate of 9.5%. The bond has face value of $1,000 and makes semiannual interest payments. If you require a 9.0% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?
Q2. Sadik Inc.'s bonds currently sell for $1,328 and have a par value of $1,000. They pay a $135 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,050. What is their yield to call (YTC)?
Q3. If 10-year T-bonds have a yield of 6.2%, 10-year corporate bonds yield 8.9%, the maturity risk premium on all 10-year bonds is 1.3%, and corporate bonds have a 0.3% liquidity premium versus a zero liquidity premium for T-bonds, what is the default risk premium on the corporate bond?
Q4. Preston Inc.'s stock has a 25% chance of producing a 30% return, a 50% chance of producing a 11% return, and a 25% chance of producing a -22% return. What is the firm's expected rate of return?
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How large will the cost per working hour be
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How much should you be willing to pay for the stock
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What is the project NPV
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What was its ROI
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What is the maximum price you should be willing to pay
: If you require a 9.0% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond
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What is the NAV per share on December
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What are the two main inventory systems
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Calculate the rate of return would you get from investment
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Analyze the internal forces of the given truss structure
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