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C. If the interest rate is 8%, compounded annually, what is the present value of $18,200 due to be received in 10 years? D. If

C. If the interest rate is 8%, compounded annually, what is the present value of $18,200 due to be received in 10 years?

D. If Rachel invests $2700 today in an account that pays 6% compounded annually, how long will it take for her to accumulate $8,500 in her account?

E. An investor just purchased a 5-year $1,000 par value bond. The coupon rate on this bond is 10% annually, with interest paid every year. If the investor expects to earn 12% simple rate of return, how much the investor should pay for it?

F. Tonys Pizzeria plans to issue bonds with a par value of $1,000 and 15 years to maturity. These bonds will pay $100 interest every year. Current market conditions are such that the bonds will be sold to net $1020. What is the yield to maturity (YTM) of this bond?

G. The last dividend on Spirexs common stock was $5, and the expected growth rate is 15%. If you require a 18% return, what price you will be willing to pay for this stock?

H. Julie J bought one share of common stock last year for $90 per share. During the year, she received a dividend of $8 share. After one year, she sold the stock for $95 per share. What rate of return did Julie earn on her investment?

I. Please calculate the dividend yield & capital gains yield in the example above.

J. ABC stock is selling at $40 per share. The earnings per share for the company for the year is $3 per share. Please calculate the Price/Earnings ratio of ABC.

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