Question
1A) What is the price of a zero coupon bond that matures in 12 years and returns $5,000 to the investor, if the yield to
1A) What is the price of a zero coupon bond that matures in 12 years and returns $5,000 to the investor, if the yield to maturity is 5.5%?
| a. | $5,000 | |
| b. | $2,775 | |
| c. | $2,677 | |
| d. | $2,630 |
1B) Your clients just purchased a new automobile for $28,600. They put $3,600 as a down payment; the remainder is financed. The terms of the fully amortized loan follow: 6-year loan, monthly payments made at the end of month, 6.8% annual percentage rate. How much is their monthly payment?
| a. | $434.38 | |
| b. | $406.72 | |
| c. | $421.44 | |
| d. | $423.83 |
1C) The Events Corporation reported earnings of $2 per share last period. Its dividend payout ratio is 60% of earnings. What should an investor pay for this dividend-paying stock if earnings are projected to increase at 8% annually and the investors required rate of return is 10%?
| a. | $64.80 | |
| b. | $60.00 | |
| c. | $66.00 | |
| d. | $70.80 |
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Cryptocurrency QuickStart Guide
Authors: Jonathan Reichental
1st Edition
1636100406, 978-1636100401
