Question
CIR, Inc. has a 16 percent coupon bond on the market with 10 years remaining until maturity.The bond makes semi-annual payments and the face value
CIR, Inc. has a 16 percent coupon bond on the market with 10 years remaining until maturity.The bond makes semi-annual payments and the face value is $1,000.If investors require a 12 percent yield, what is the current bond price?
A bond with face value $1,000 has 14 years until maturity, a coupon rate of 8 percent, paid annually and a yield to maturity of 6 percent.What is its current yield?
Bonds issued by the Etling Corporation have a price of $790.55 and a coupon rate of 8 percent which is paid annually.The bonds will mature in 14 years and the face value is $1,000.What is the yield to maturity?
Stability Corporation's dividend is expected to be $1.60 next year.Its current stock price is $40 per share.The company is a constant growth firm.If investors require a return of 12 percent on this stock, what do they think Stability's growth rate will be?
If the risk-free rate is 4% and the expected rate of return on the market portfolio is 9%, is a security with a beta of 1.8 and an expected return of 15% over-priced or under-priced?
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