I did this and got a 75% not sure where I went wrong but would like to have someone do the problems so I can spot check.

This will enhance my learning.

1. Consider a bond with a face value of $1,000, an annual coupon rate of 6 percent, a yield to maturity of 8 percent, and 10 years to maturity. This bond's duration is 8.7 years 7.6 years 10.0 years 6.5 years 2. A threeyear bond with 10 percent coupon rate and $1,000 face value yields 8 percent. Assuming annual coupon payments, calculate the price of the bond. $1,000.00 $857.96 $951.96 $1,051.54 3. A fouryear bond has an 8 percent coupon rate and a face value of $1,000. If the current price of the bond is $878.31, calculate the yield to maturity of the bond (assuming annual interest payments). 8 percent 10 percent 12 percent 6 percent 4. The following are auction markets except the Tokyo Stock Exchange New York Stock Exchange London Stock Exchange Nasdaq 5. The type of bonds where the identities of bond owners are recorded and the coupon interest payments are sent automatically are called government bonds bearer bonds registered bonds recorded bonds 6. Which bond is more sensitive to an interest rate change of 0.75 percent? Bond A: YTM = 4.00%, maturity = 8 years, coupon = 6% or $60, par value = $1,000. Bond B: YTM = 3.50%, maturity = 5 years, coupon = 7% or $70, par value = $1,000. Bond A Bond B Both are equally sensitive Cannot be determined 7. You buy a 12year 10 percent annual coupon bond at par value, $1,000. You sell the bond three years later for $1,100. What is your rate of return over this threeyear period? 40 percent 10 percent 20 percent 30 percent 8. One can estimate the expected rate of return or the cost of equity capital as Dividen yield expected rate of growth in dividends Dividend yield + expected rate of growth in dividends Dividend yield/expected rate of growth in dividencs (dividen yield) x (expected rate of gorwth in dividends) 9. A bond has a face value of $1,000, a coupon rate of 0 percent, yield to maturity of 9 percent, and 10 years to maturity. This bond's duration is 6.7 years 9.6 years 7.5 years 10.0 years 10. The following are foreign companies that are traded on the New York Stock Exchange: Sony, Telefonica Brasil, and Canadian Pacific only. Sony, Telefonica Brasil, Canadian Pacific, and Tata Motors only. Sony, Telefonica Brasil, Canadian Pacific, and General Electric only. All of the given companies 11. A government bond issued in Germany has a coupon rate of 5 percent, a face value of 100 euros, and matures in five years. The bond pays annual interest payments. Calculate the yield to maturity of the bond (in euros) if the price of the bond is 106 euros. 5.00 percent 3.66 percent 3.80 percent 6.00 percent 12. Assume General Electric (GE) has about 10.3 billion shares outstanding and the stock price is $37.10. Also, assume the P/E ratio is about 18.3. Calculate the approximate market capitalization for GE. $103 billion $679 billion $188 billion $382 billion 13. A government bond issued in Germany has a coupon rate of 5 percent, a face value of 100 euros, and matures in five years. The bond pays annual interest payments. Calculate the price of the bond (in euros) if the yield to maturity is 3.5 percent. 100.00 106.77 106.33 105.00 14. The following entities issue bonds to engage in longterm borrowing except federal government corporations state and local governments Individuals 15. In which of the following stock exchanges are there designated market makers who act as auctioneers? New York Stock Exchange London Stock Exchange Tokyo Stock Exchange Deutsche Borse 16. CK Company stockholders expect to receive a yearend dividend of $5 per share and then immediately sell their shares for $115 dollars per share. If the required rate of return for the stock is 20 percent, what is the current value of the stock? $122 $132 $100 $110 17. Parcel Corporation expects to pay a dividend of $5 per share next year, and the dividend payout ratio is 50 percent. If dividends are expected to grow at a constant rate of 8 percent forever, and the required rate of return on the stock is 13 percent, calculate the present value of growth opportunities. $76.92 $100.00 $23.08 $69.54 18. Super Computer Company's stock is selling for $100 per share today. It is expected that, at the end of one year, it will pay a dividend of $6 per share and then be sold for $114 per share. Calculate the expected rate of return for the shareholders. 20 percent 15 percent 10 percent 25 percent 19. A Wall Street Journal quotation for a company has the following values: Div: $1.12, PE: 18.3, Close: $37.22. Calculate the approximate dividend payout ratio for the company. 18 percent 35 percent 45 percent 55 percent 20. If a Wall Street Journal quotation for a company has the values Close = 55.14 and Net change = +1.04, then what was the closing price for the stock for the previous trading day? $56.18 $54.10 $55.66 $53.02