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a)Calculate the value of a bond that matures in 12 years and has a $1,000 par value. The annual coupon rate is 8% and the
a)Calculate the value of a bond that matures in 12 years and has a $1,000 par value. The annual coupon rate is 8% and the market's required yield to maturity on a comparable-risk bo is 12%. 5 points b)What will be the value of the bond be if the payments are semi annual? c)Explain the four relationships of a Corporate Bond. 5 points a)On December 26,2007, the common stock of Google Inc. was trading for $710.84.One year later the shares sold for only $300.36. Google Inc. has never paid a common stock dividend. What rat of return would you have earned on your investment had you purchased the shares on December 26 2007? b)What will be the rate of return if Google Inc. paid cash dividend of $26.22? c)B.J. Gautney Enterprises is evaluating a security. One-Year treasury bills are currently paying 3.4 percent Calculate the investment's expected retum and it's standard deviation Should Gautney invest in this security? Probability Return 0.20 -6% 0.50 11% 0.10 5% 0.20 9%
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