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Please help as many as you can, this is the last question post that I can use, I am desperate for helps, if you could
Please help as many as you can, this is the last question post that I can use, I am desperate for helps, if you could help me I might have a chance to pass the class.
Question 1 1 pts Use the bond term's below to answer the question Maturity 7 years Coupon Rate 5% Face value $1,000 Annual Coupons The bond is callable in year 5 The call price is $1,040 The interest rate in period 5 is 2% If the firm calls back the bond, how much does the firm save or lose? O $19.16 O $18.25 0-$18.25 0-$16.55 0-$19.16 O $16.55 Question 2 1 pts Use the bond term's below to answer the question Maturity 6 years Coupon Rate 3.50% Face value $1,000 Annual Coupons The bond is callable in year 3 The call price is $1,035 The interest rate in period 3 is 2.50% If the firm calls back the bond, how much does the firm save or lose? O $6.76 0-$7.05 O $6.44 O $7.05 O $6.76 O-$6.44 D Question 3 1 pts Given the information in the table, answer the question. If the YTM remains constant, what is dollar capital gains or loss between periods 2 and 3 ? Maturity 5 years Face Value $1,000 Coupon Rate 6.00% Coupon Period Annual YTM 7.00% O $7.13 O $8.98 O $7.42 O $8.16 U Question 4 1 pts Term (years) Today's Rate 1 1.00% 2 1.80% 3 2.50% Based on the expectations hypothesis, what does the market expect the 1 year rate in 1 year to be? 0 2.7496 O 3.26% O 3.91% O 2.61% Question 5 1 pts Term (years) Today's Rate 1 1.50% 2 1.75% 3 3.00% Based on the expectations hypothesis, what does the market expect the 1 year rate in 2 years to be? O 2.00% O 3.76% O 5.5596 0 5.27% O 5.82% Question 6 1 pts Term (years) Today's Rate 1 1.60% 2 3 3.00% Based on the expectations hypothesis, what does the market expect the 2 year rate in 1 year to be? O 3.71% O 2.00% O 5.4496 O 3.52% O 3.89% D Question 7 1 pts Given the information in the table, Current dividend $5.00 Growth Rate in Dividends 3.40% Required Return on Equity 6.00% According to the Gordon Growth Model, what is the dividend yield of this stock between years 1 and 2? 0 2.60% O 2.52% 0 2.64% O 2.66% Question 8 1 pts Current dividend $5.00 Required Return on Equity 4% Growth Rate in Dividends 1% According to the Gordon Growth Model, what is the price of this stock in year 3 ? O $177.49 O $167.77 O $173.43 O $176.16 Question 9 1 pts Use the bond term's below to answer the question Maturity 5 years Coupon Rate 5% Face value $1,000 Annual Coupons When you buy the bond the interest rate is 5% Right after you buy the bond, the interest rate changes from 5.00% to 4.00% and remains there. What is the price effect in year 4? O $10.05 O $7.95 O $9.62 O $8.74 O $10.58 Question 10 1 pts The term structure is the relation between maturity and YTM for pure discount bonds. Based on the information given, what is the 1-year YTM (1-year rate) implied by the bond prices in the table? Maturity (years) Bond Price Bond Face Value 1 $980.39 $1,000 2 $942.60 $1,000 3 $901.94 $1,000 O 3.00% 02.0296 O 2.00% O 3.50% U Question 11 1 pts Assume you buy a bond with the following features Bond maturity - 4 Coupon Rate = 6.00% Face Value = $1,000 Annual Coupons When you buy the bond the market interest rate 3.50% Immediately after you buy the bond the interest rate changes to What is the "reinvestment" effect in year 4 ? 4.50% O $3.79 O $3.91 0-$3.91 0-$3.79 D Question 12 1 pts Given a bond with the following features, what is the bond's YTC? Maturity 9 years. Call Date 5 years. Coupon Rate 3% Face Value $1,000 Annual Coupon Call Price $1,050 Price $1,010 O 3.71% 04.08% O 3.37% O 2.97% Question 13 1 pts Given a bond with the following features, what is the bond's YTM? Maturity 5 years. Coupon Rate 3% Face Value $1,000 Annual Coupon Price $998 O 3.35% 2.77% O 3.04% O 3.01% U Question 14 1 pts The US Treasury issues a bond with the following features Face Value = $1,000 Maturity in years 7 Coupon Rate = 6.00% The bond's cash-flows are in Nominal terms. Coupons are paid annually You would like to earn 3.00% in real terms. If you expect inflation to be 4.00% over those same years, how much would you pay for the bond? O $1.186.91 O $1,120.04 O $939.89 O $946.11Step by Step Solution
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