An investor holds a bond with a face value of $5,000, a coupon rate of 4%, and semi-annual payments that matures on 15/01/2021. How much will the investor receive on 15/01/2021?

Select one:

a.$5,100

b.$5,000

c.$5,200

d.$200

Clear my choice

Question29

Which one of the following contributes to the widening of a credit spread during times of uncertainty?

Select one:

a.Money moves from risky assets to safe assets which decrease the value of risky assets therefore driving the yield of risky assets down.

b.Money moves from safe assets to risky assets which decreases the value of safe assets therefore driving the yield of safe assets up.

c.Money moves from risky assets to safe assets which increases the value of safe assets therefore driving the yield of safe assets down.

d.Money moves from safe assets to risky assets which increases the value of risky assets therefore driving the yield of risky assets down.

Clear my choice

Question30

FIN222 Ltd expects earnings next year of $5.5 per share and has a 60% retention rate, which it plans to keep constant. Its cost of equity is 10%, which is also its expected return on new investment. What do you estimate the firm's current share price to be?

Select one:

a.$58.3

b.$82.5

c.$22

d.$55