just need answer

1. A bond matures in 14 years at $1,000. The bond has a coupon of 4% and makes semiannual payments. The bond currently sells for $1,037 and is callable in 5 years at a special price of '.1020. What is the YTM and YTC of the bond? Make your selection: 2. An investor purchases a bond at par ($1,000) and is planning to hold it to maturity, which is in 20 years. The bond has a coupon of 4%, and makes semiannual payments. If the investor is planning to invest the coupon payments into a money market yielding 2%, what is the Realized Compound Yield (RCY) if the investor holds to maturity and the money market rate remains constant over the next 20 ears? 3. XYZ bond matures in 28 years at $1,000, carries a 4.4% coupon, paid semi-annually, and com arable bonds are ieldin- 4.6%. What is the modified duration of the bond? 13.75 years 14. 9? years 15. 80 years 16. 20 ears A. 6.88% B. 7.49% C. 7. 90% D. 8.10% 5. An investor owns a convertible bond with a 3.5% coupon, paid semiannually. The bond matures in 9.5 years, and is convertible at a price of $ 50 per share. If comparable bonds are yielding 3.8%, and the current market price of the stock is $ 57 per share, what is the conversion value of the bond? Make your selection: 6. Referencing the convertible bond listed in question if 5 (above), what would the downside risk be if the bond was currentl Iriced at ".1202? There is no downside risk $ 94 $ 102 $ 226 361 Make your selection: I:| I". A client has a cash need at the end of seven years. Which of the following investments might initially immunize the portfolio? 1. A 9year maturity coupon. 2 . A 7year maturity coupon Treasury note. 3. A series of Treasu bills. Statements 1, 2, and 3 Statement 1 only Statements 2 and 3 Statement 2 only Statements 1 and 2 Make your selection: I:| The following information is provided for questions 8 - 9. Bond A has a 6% coupon, paid semi-annually and is due in 2 years. It's value is currently $ 900. Bond B has a 10% coupon, paid semi-annually and is due in 4 years. It is priced to yield 12%. Bond C is a zero-coupon bond priced to yield 11% in 8 years. 8. The yield to maturity of Bond A is closest to: 9.9% 10.4% 10.9% 11.4% 11.8% Make your selection: Assuming that the duration of Bond A is 1.94 years, which of the following statements about the effect of a 1% decline in interest rates is true? A Bond C, having a longer duration than Bond A, would have a larger percentage increase in price than Bond A. B The percent change in a price of a bond is independent of the duration of a bond. C. It is not possible to determine the percent change in price of Bond A versus Bond C because the duration of Bond C is not given. D Bond A would have a greater percent change in price vs. Bond C because it has a shorter duration. E The percent change in the price of Bond A and C is equal since it is not affected by duration. Make your selection: 10. Assuming that the current market yield for similar risk bonds is 8%, determine the discounted present value of a $ 1,000 bond with a 7.5% coupon rate, which pays interest semiannually and matures in 17.5 years. $ 504.68 539.78 $ 953.34 $ 968.96 $ 994.26 Make your selection: 11. To immunize a bond portfolio over a specific time horizon, an investor would do which of the following: A Match the maturity of each bond to the investment horizon. B Match the duration of each bond to the investment horizon. Match the average weighted maturity of the portfolio to the investment horizon. Match the average weighted duration on the bond portfolio to the investment horizon. Make your selection: 12. Which of the following statements correctly describes a theory of the term structure of Interest rates? A. The expectations theory is based on consumer expectations of credit card rates. B The liquidity preference theory is based on the assumption that the more liquidity in the market, the higher the interest rates. C, The segmentation theory suggests that supply and demand for funds at specific segments along the yield curve is different for various groups. D The term structure theory is based on expectations of the open long and short positions in the stock market. Make your selection:Use the following information to answer questions 13- 18 below. NOTE: It is necessary to answer questions 13-18 in order. Annual returns Fund A Fund B 2011 0% 9% 2010 5% 1% 2009 3% 3% 2008 -4% 2% 2007 3% 1% Portfolio Weight 60% 40% Correlation Coefficient of AB -0.28 13. What is the average return and standard deviation for fund A? Ave. Return Stand. Dev. 4.40% 5.46% 4.40% 5.76% 4.60% 5.46% 4.60% 5.76% Make your selection: 14. What is the average return and standard deviation for fund B? Ave. Return Stand. Dev. 4.80% 3.56% 4.80% 3.86% 4.90% 3.56% 4.90% 3.86% Make your selection: 15. What are the coefficient of variations of each fund respectively, (i.e. A, B)? CV of A CV of B 1.14 0.74 1.19 0.74 1.14 0.80 1.19 0.80 Make your selection: 16. What is the covariance between funds A and B? (based on whole numbers for standard deviation) -5.443 -6.225 -5.498 -6.569 Make your selection: 17. What is the standard deviation of the combined Fund AB? A. 3.03% 3.07% 3.15% 3.19% Make your selection: 18. The weighted return of Fund AB is 4.68%. There is a 13.5% chance that the actual combined fund AB will be less than and greater than ? Less than AND Greater than imuo -1.382% -1.610% -1.690% Make your selection:19. XYZ fund has a correlation coefficient of .9 with the S & P 500. What percentage of the variability of return on XYX fund is caused by the variability of the S & P 500? Also, what percentage of the funds variability is caused by unsytematic factors? 90%, 10% 81%, 10% 81%, 19% 90%, 19% Make your selection: 20. ABC fund just reported had a 12 month return of 14%. If the fund has a standard deviation of 24%, and the 90-day T. Bill is yielding 4%, what is the fund's Sharpe Ratio? 0.3856 0.3962 0.4167 0.4257 Make your selection: 21. DEF fund had a return of 11% in the 12 months just ended, and had a required return of 15%. What is Jensen's Alpha for fund DEF? A . 4% -0.04 0.04 -0.4% Make your selection: 22. An investor is planning to purchase a stock with a beta of 1.40. If the 90-day T, Bill is 5.5% and the market risk premium is 7.5%, what is the investor's required return for the stock? 8.30% 10.00% 15.50% 16.00% Make your selection: 23. An investor purchased a stock ten years ago for $42. The current price of the stock is $38 and over the years the investor collected 12 quarterly dividends of $0.12 each and 28 quarterly dividends of $0.15 each. What is the Holding Period Return (HPR) of the investment? A. 3.4% 3.9% 4.2% 4.7% Make your selection: 24. For the question above (#23), calculate the investors Internal Rate of Return (IRR). Assume all dividends were paid and collected at the end of the quarter .408% 1.020% 10.200% 102.000%25. What is the geometric return of a fund for the last 7 years with the following returns? 2011 14% 2010 10% 2009 6% 2008 2% 2007 .9% 2006 2% 2005 -3% 5.03% 5.05% 5.07% 5.09% Make your selection: 26. What is the intrinsic value of a stock that expects to pay its first dividend of $1.75 in a year? The firm believes it can maintain a constant growth rate of 5% on the dividend, and the required return for the stock is 9.57% A. 38.19 38.29 38.39 38.49 Make your selection: 27. A preferred stock pays an annual dividend of $4.25. If the required return is 7%, what is the intrinsic value of the stock? A. 60.71 66.21 72.71 78.21 Make your selection: The following information is provided for questions 28 -32 ABC stock has: Current Price 75.75 Current Dividend 1.20 Earnings Per Share 6.00 Return on Equity 10% Beta 1.55 ABC will grow its stock at a constant rate in the future. In addition, the following market/economic data is provided: 90-day Treasury Bill Rate is 4% Anticipated return on the market for the next 12 months is 11% 28. How much is ABC's sustainable growth rate? A. 8.00% 9.80% jo 10.15% 10.20% Make your selection: 29. What is ABC's required return? 10.25% 14.85% 15.25% 20.50% Make your selection: 30. What is ABC's expected return? A . 9.71% 10.25% 15.27% 20.25% Make your selection:31. Based on your answers to questions 29 and 30, is ABC stock currently overvalued, undervalued or priced in equilibrium? A. Overvalued Undervalued Equilibrium priced Make your selection: 32. What is the intrinsic value of ABC? A muc 18.32 18.52 18.72 18.92 Make your selection: 33. Super Growth Company will begin paying a dividend one year from today of $2.00 per share. The following year, they are planning to boost their dividend to $4.00, and then increase its dividend thereafter at a constant growth rate of 6%. If an investor has a required return of 9%, what is the intrinsic value of the stock today? 114.26 B . 124.16 jo $ 34.26 $ 144.26 Make your selection: 34. Joe Banks purchased 300 shares of a $42 stock in his margin account. His broker charges $6.00 in commission for an unlimited amount of shares, and has a policy of 50% initial margin and 35% maintenance margin. Three days later on settlement day, Joe delivered a check to the broker in the amount of $6.303. One week went by and the stock suddenly fell to $26.00. How much will Joe have to pay in a margin call? A. 953 983 1,023 1,233 1,523 Make your selection: 35. Which of the following are diversifiable risks? 1. Business risk. Market risk. Company or industry risk. 4 . 5 , Management risk. Interest rate risk. Purchasing power risk. 4, 5, and 6 only. 1,2, and 3 only. 5, 6, and 2 only. 1, 3, and 4 only. 1, 4, and 6 only.Make your selection: Use the following table for questions 36 - 37 Cost or Market Security Beta Expected Return Basis Value Stock X 1.5 22% $10,000 $11,000 Stock Y 1.2 1 1% $10,000 $15,334 Stock Z 0.9 9% $10,000 $24,785 36. What is the expected return of this portfolio? A. 10.897% B. 11.397% 11.897% 12.397% E. 13.897% Make your selection: 37. A client wishing to increase expected return and willing to increase risk would logically do which of following? I. Increase amount of Stock X and decrease the amount of Stock Z II. Increase amount of Stock Y and decrease the amount of Stock Z III. Increase amount of Stock Z and decrease the amount of Stock X A. I only B. I and II only C. I and III only D. m II and III only None of these will accomplish goalUse the following table for questions 38 - 50 SECURITY A SECURITY B Dividends paid Five (5) Years Ago HAHA 1.56 0.96 Current Dividend 3.42 2.01 Most Recent Annual Return 20% 15% Retention Ratio 75% 80% Standard Deviation 12% 14% Beta 1.40 1.50 P/E Ratio 12.5 10.0 Return on Equity 22.67% 20.00% Earnings Per Share $ 13.68 $ 10.05 Correlation Coefficient (between AB) 0.35 Expected Return Growth Rate Required Return PEG Ratio Current Price Fair Price Sharpe Index Treynor Index Alpha Covariance Other Information The rate on 90 day T-Bills is currently 5.5%. The Market Risk Premium is 12%. Assume Security A's growth rate of dividends in the future is going to continue at the same rate as the last 5 years. Professor's note: The items that are italicized , will all have to be calculated, in order to arrive at the bold font items, which are the actual questions below) 38. What is the covariance between Security A and Security B? (Using whole numbers for Std. Dev.) A . Can't determine 35.0 42.5 58.8 4,250.0 Make your selection: 39. What is the fair price for Security A? A. Can't determine B. $ 75.50 $ 84.75 $ 150.25 $ 165.50 Make your selection: 40. What is Security A's PEG ratio? A. Can't determine B. 0.500 C. 0.625 D. 0.735 16.66741. What is Security A's expected return? A. Can't determine B. 16.58% C. MO 17.47% 18.15% 19.34% Make your selection: 42. What is Security A's Sharpe Index? A. 0.25 1.15 1.21 8.57 10.36 Make your selection: 43. What is Security A's Alpha (Jensen's Alpha)? A. mono 4.83 -2.96 -2.30 4.15 5.72 Make your selection: C 44. What is Security A's Treynor Index? mona? 3.46 7.91 9.04 10.25 10.36 Make your selection: 45. What is the fair price for Security B? A. Can't determine B . C . $ 25.00 31.00 85.25 $ 100.50 Make your selection: 46. What is Security B's PEG ratio? A. Can't determine 0.500 0.625 0.667 16.667 Make your selection:47. What is Security B's expected return? A. Can't determine B. 16.72% C. 17.57% D. 18.32% 19.64% Make your selection: 48. What is Security B's Sharpe Index? A. 0.68 B. 0.82 C. 1.14 D. 1.36 F . 6.57 Make your selection: 49. What is Security B's Alpha (Jensen's Alpha)? A. 8.50 B. -7.86 C. -7.15 D. m 3.30 7.25 Make your selection: 50. What is Security B's Treynor Index? A. 5.96 B. 6.33 C. 7.00 D. 7.24 15.67 Make your selection