Question
1: Kuley plans to save $21,900 per year for 6 years. His first savings contribution is expected in 1 year. He then plans to make
1: Kuley plans to save $21,900 per year for 6 years. His first savings contribution is expected in 1 year. He then plans to make withdrawals for 3 years. How much can Kuley expect to withdraw each year if he expects to earn 4.04 percent per year, he makes equal annual withdrawals, and his first withdrawal is in 6 years?
2:One year ago, a bond had a coupon rate of 12.20%, par value of $1000, YTM of 7.66%, and semi-annual coupons. Today, the bonds price is $1,231 and the bond has 9 years until maturity. What was the current yield of the bond one year ago? The next coupon is due in 6 months. Answer as a rate in decimal form, rounded to 4 decimal places (for example, .1234 or .0987).
3:Bonds issued by GlivCo were priced at $928.32 six months ago and are priced at $976.07 today. The bonds have a face value of $1,000, pay semi-annual coupons, and just made a coupon payment. The bonds had a percentage return over the past six months (from 6 months ago to today) of 6.04%. What is the coupon rate of the bonds? Answer as a rate in decimal form, rounded to 4 decimal places (for example, .1234 or .0987).
4;Nabax owns 1 share of stock A and 1 share of stock B. In 1 year from today, the total value of his holdings is expected to be $147. Stock A is currently priced at $85.16, has an expected return of 6.40%, and is expected to pay a dividend of $3.14 in 1 year from today. Stock B has an expected return of 6.99% and is expected to pay a dividend of $5.37 in 1 year from today. What is the price of stock B today? Round your answer to the nearest cent (for example, -123.45 or 98.76).
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