Question
I NEED HELP PLEASE ASAP!! 1. You find a zero coupon bond with a par value of $25,000 and 18 years to maturity. If the
I NEED HELP PLEASE ASAP!! 1. You find a zero coupon bond with a par value of $25,000 and 18 years to maturity. If the yield to maturity on this bond is 3.9 percent, what is the price of the bond? Assume semiannual compounding periods. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
2. An investment offers a total return of 16 percent over the coming year. Alan Wingspan thinks the total real return on this investment will be only 12 percent. What does Alan believe the inflation rate will be over the next year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
3. Roy's Welding Supplies common stock sells for $22 a share and pays an annual dividend that increases by 6 percent annually. The market rate of return on this stock is 8 percent. What is the amount of the last dividend paid?
$0.42
$0.41
$0.61
$0.44
$0.45
4. The closing price of a stock is quoted at 32.08, with a P/E of 21 and a net change of .36. Based on this information, which one of the following statements is correct?
A. A dealer will buy the stock at $32.08 and sell it at $32.44 a share.
B. The current earnings per share equal $32.08 / 21 + $.36.
C. The closing price on the previous day was $.36 higher than today's closing price.
D. The earnings per share have increased by $.36 this year.
E. The current stock price is equivalent to 21 years of the firms current earnings per share.
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