Question
1) If Peter deposits $30,000 in a saving account paying 2.7% per year, how much will Peter have after 23 years under annual compounding? 2)
1)
If Peter deposits $30,000 in a saving account paying 2.7% per year, how much will Peter have after 23 years under annual compounding?
2)
Preston Inc. Stock price goes from $104 to $126 over the following period and it also pays $5 in dividends at the end of the period. What is the rate of return on this stock, including the dividend paid? Answer as a percent rate of return to two places.
3)
Guilford Inc. stock faces equal probability of the following two outcomes for the next period: The stock will have have either a 33% or a 44% rate of return. What is Guilford Inc. stock's standard deviation (not the variance) as a percent to a two place accuracy to the right of the decimal point.
4)
Plymouth Inc. issues some zero-coupon bonds with a maturity of 18-years, when the interest rate is 2.6%. Calculate the price per $1,000 face value for this bond to the nearest cent.
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