What is the value of a bond that has a par value of $1000, that has a coupon rate of 9.98 percent (paid annually), and that matures in 6 years? Assume a required rate of return on this bond of 9.46 percent. Round the answer to two decimal places. $

## Financial services within one financial institutionThere are two types of exchanges in the secondary market for capital securities: organized exchanges and over-the-counter exchanges. |

## Calculate expected rate of returnYou are considering investing in a project with the following possible outcomes: Calculate the expected rate of return |

## Basic interest rate swap and futures positionsSuppose that you buy an interest rate cap on three month LIBOR with a two year maturity and simultaneously sell a floor on three month LIBOR with a two year maturity. Ignore the premiums. Draw a profit diagram that indicates when you will gain and lo.. |

## How much is the investment worth-generate annual cash flowsCopy of You have the opportunity to purchase an investment that will generate annual cash flows of $400 per year for the next 9 years and will pay an additional $2,046at the end of 9 years. If your required rate of return on this investment is 9%, ho.. |

## What is the value of the option to abandonWe are examining a new project. We expect to sell 5,300 units per year at $67 net cash flow apiece for the next 10 years. In other words, the annual operating cash flow is projected to be $67 × 5,300 = $355,100. The relevant discount rate is 16 perce.. |

## What is EPS for the proposed capital structureCartwright Communications is considering making a change to its capital structure to reduce its cost of capital and increase firm value. Right now, Cartwright has no debt in its but plans to borrow $6 million with interest rate of 8%. What is EPS for.. |

## What is the current price of the t-billA $10,000 T-bill has a required return (stated as an EAR) of 2.5 percent and will mature in 130 days. What is the current price of the T-bill? What is the T-Bill Yield? What is the T-Bill Discount? |

## Cash flow data-What is the project IRRXYZ Renovations Inc. is considering a project that has the following cash flow data. What is the project’s IRR? Note that a project’s projected IRR can be less than the WACC (and even negative), in which case it will be rejected. Year Cash Flow 0 ($5.. |

## Selling stock with a limit orderSelling Stock with a Limit Order You would like to sell 200 shares of Pfizer, Inc.(PFE). how much money do you receive from the buyer? |

## Able to buy a really cool new carBart Simpson, age 10, wants to be able to buy a really cool new car when he turns 15. His really cool car costs $16,000 today, and its cost is expected to increase 3 percent annually. Bart wants to make one deposit today (he can sell his mint-conditi.. |

## Can financial prices ever overshoot or undershootWhat is a "bubble" in a financial market? - Can financial prices ever overshoot or undershoot optimal values? |

## Company is currently paying a sales representativeA company is currently paying a sales representative $0.25 per mile to drive her car for company business. |

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