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i need thee in 45 mins. let me know if you can do this 1. Which of the following is fixed (e.g., cannot change) for
i need thee in 45 mins. let me know if you can do this
1. Which of the following is fixed (e.g., cannot change) for the life of a given bond? (Points : 4) current price current yield YTM coupon rate Question 2. 2. How much would an investor expect to pay for a $5,000 par value bond with a 9% annual coupon that matures in 10 years if the interest rate is 7%? (Points : 4) 5702.36 4374.25 3811.42 3584.55 Question 3. 3. What is the yield to maturity for a bond with an annual coupon of 10% that has 8 ears until maturity and sells for $1,000? (Points : 4) 8% 9.4% 10% 12.5% Question 4. 4. What is the yield to maturity of a bond with the following characteristics? Coupon rate is 8% with quarterly payments, current price is $940, 6 years until maturity. (Points : 5) 4.78% 2.33% 9.32% 4.67% 3.48% Question 5. 5. What is the coupon rate for a bond with 3 years until maturity, a price of $1,053.46, and a yield to maturity of 6%? (Points : 5) 6% 8% 10% 11% Question 6. 6. If a bond is priced at par value, then: (Points : 4) it has a very low level of default risk. its coupon rate equals the market rate. it must be a zerocoupon bond. the bond is very close to maturity. Question 7. 7. What is the amount of the annual coupon payment for a bond that has 6 years until maturity, sells for $1,050, and has a yield to maturity of 10.5%? (Points : 5) $116.65 $93.70 $110.24 $105.00 $121.73 Question 8. 8. What happens to the price of a 3year bond (with par value $1,000) with an 8% coupon when interest rates change from 4 to 7%? (Points : 5) A price increase of $85 A price decrease of $85 A price increase of $90.47 A price decrease of $90.47 Question 9. 9. The value of common stock will likely decrease if: (Points : 4) the investment horizon decreases. the growth rate of dividends increases. the cost of equity increases. dividends are not discounted to the present. Question 10. 10. If next year's dividend is forecast to be $12.00, the constantgrowth rate is 4.5%, and the discount rate is 12%, then the current stock price should be: (Points : 5) 160 167.2 184.55 127.41 192.52 Question 11. 11. What constantgrowth rate in dividends is expected for a stock valued at $50.00 if next year's dividend is forecast at $2.00 and the appropriate discount rate is 13%? (Points : 5) 8% 7.25% 9.75% 11.38% 9% Question 12. 12. What would be the approximate expected price of a stock when dividends are expected to grow at a 25% rate for 3 years, then grow at a constant rate of 5%, if the stock's required return is 13% and next year's dividend will be $4.00? (Points : 5) 61.60 62.08 68.62 79.44 Question 13. 13. Company A is expected to grow at 8% for the first 4 years and then grow at 3% constantly afterwards. What is the expected price of the stock of Company A if the Cost of capital is 6% and next years dividend is $2.65? (Points : 5) 109.08 101.07 105.48 98.41 101.88 Question 14. 14. What should be the current price of a share of stock if a $5 dividend was just paid, the stock has a required return of 20%, and a constant dividend growth rate of 6%? (Points : 5) 19.23 25 35.71 37.86 Question 15. 15. The book value of a firm's equity is determined by: (Points : 4) multiplying share price by shares outstanding. multiplying share price at issue by shares outstanding. the difference between book values of assets and liabilities. the difference between market values of assets and liabilities. Question 16. 16. What is the approximate standard deviation of returns if over the past 4 years an investment returned 8.0%, 12.0%, 12.0%, and 15.0%? (Points : 5) 9.26% 10.26% 11.26% 12.01% Question 17. 17. What is the variance of return of a threestock portfolio (each stock being equally weighted) that produced returns of 20%, 28%, and 30%? (Points : 5) 16.67 18.67 25.41 24.93 Question 18. 18. The benefits of portfolio diversification are highest when the individual securities have returns that: (Points : 4) vary directly with the rest of the portfolio. vary proportionally with the rest of the portfolio. are less than perfectly correlated with the rest of the portfolio. are countercyclical. Question 19. 19. The current yield measures the bond's total rate of return. (Points : 4) True False Question 20. 20. The coupon rate of a bond equals: (Points : 4) its yield to maturity. a percentage of its face value. the maturity value. a percentage of its price. Question 21. 21. What is the coupon rate of a bond which has a price of $1100, Yield to Maturity of 14%, matures in 5 years and makes semi-annual coupon payments? (Points : 5) 7.7% 16.91% 8.42% 16.85% 14% Question 22. 22. The presence of risk means that (Points : 4) investors will lose money. more than one outcome is possible. the standard deviation of the payoff is larger than its expected value. final wealth will be greater than initial wealth. terminal wealth will be less than initial wealthStep by Step Solution
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