Can someone show me the work for these questions? Please
For the next four questions consider the following bonds, all with 1.000 par values L A 8.5% coupon rate, 20-year bond with interest paid annually, currently priced at $1,100 A 10-year bond, paying 545 coupons every 6 months, currently priced to yield 6% A 6% coupon rate, 18-year bond with interest paid annually, priced at $540 A zero-coupon, 30-year bond currently priced at $250 II. TII. IV. 7.5 -9 1) Which one has the highest current yield? A. B. C. 1 II 2) Which one has the highest yield to maturity? A. B. C. D. 1 II III IV 3) Which one is trading at the largest premium? A B C. D. I II III IV 4) If you expected a sharp decrease in interest rates in the next few weeks, which one would be a better investment for the near term? (you are trying to maximize the change in price following the rate cut). A R IL DIV 5) A 6% coupon rate (coupons paid annually S1000 mar value bond with 5 years left until maturity is currently worth 5883.31. What is the YTM? A. 6% B. 7.55% C. 99% D. 8.25% 6) A6% coupon rate (coupons paid annually. $1.000 par value bond with 5 years left until maturity is currently worth $883.31. How much will it be worth 2 years from now ir interest rates are constant and hence its YTM does not change? $902.80 $924.06 $992.49 $1,049.46 7) What is the coupon rate for a bond with 6 years until maturity, a price of $1.253.78 and a yield to maturity of 5%? Interest is paid annually; par value is $1,000. A. B. c. D. 5% 8% 10% It cannot be determined with the available information. 8) Consider a bond with 4-years until maturity, a par value of $1,000 and a 9% coupon rate (coupons paid annually). If the YTM of the bond increases from 9% to 11%, then... A. The bond's price will increase by S62, with a current yield larger than 9% B. The bond's price will decrease by S62, with a current yield larger than 9% The bond's price will increase by S62, with a current yield lower than 9% D. The bond's price will decrease by $62, with a current yield lower than 9% 9) One year ago, you purchased a 5-year, 4% annual coupon bond for $935. Today the bond has a YTM of 4% and you decide to sell it. What was your holding period return on this investment? A. 4.00% B, 6.95% C. 15.51% D. It cannot be determined from the information provided 10) Which ones of the following statements are FALSE? I. The yield curve depicts the current relationship between bond yields and default risk II. The yield curve depicts the default risk of bonds of different maturities III. The most common shape for the yield curve is downward sloping A. I and II only B. I and III only C. II and Ill only D. L. II and III 11) A firm has 120,000 shares of stock outstanding, a sustainable rate of growth of 3.8%, and S648,200 in next year's free cash flow. What value would you place on a share of this firm's stock if you require a 14% rate of return? A) $48.09B ) S54.02 C) $61.58 D) 552.96 12) What is the current price of a share of stock for a firm with 55 million in balance sheet Equity, 500,000 shares of stock outstanding, and a price/book value ratio of 4? A) S10.00 B) S2.50 C) $20.00 D) $40.00
