Question
Please post all work so I can understand the process :) Thank you! -East India Co. bonds carry an 8 percent coupon, payable semiannually. The
Please post all work so I can understand the process :) Thank you!
-East India Co. bonds carry an 8 percent coupon, payable semiannually. The bonds mature in 11 years and have a $1,000 face value. Currently, the bonds sell for $952. What is the yield to maturity?
A. | 7.87 percent |
B. | 7.92 percent |
C. | 8.08 percent |
D. | 8.69 percent |
E. | 9.20 percent |
-China Oil offers 7.5 percent coupon bonds with semiannual payments. Market rate of interest is at 7.68 percent. The bonds mature in 6 years. What is the market price per bond if the face value is $1,000?
A. | $989.70 |
B. | $991.47 |
C. | $996.48 |
D. | $1,002.60 |
E. | $1,013.48 |
-Tech bank corp has a 7 percent, semiannual coupon bond outstanding with a current market price of $1,023.46. The bond has a par value of $1,000 and a yield to maturity of 6.72 percent. How many years is it until this bond matures?
A. | 12.26 years |
B. | 12.53 years |
C. | 18.49 years |
D. | 24.37 years |
E. | 25.05 years |
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-United Lighting ltd. just paid an annual dividend of $3.10 a share that is expected to grow at 4 percent per year. What is an investor expected to pay per share if the market rate of return for similar risky assets is 12 percent?
A. | $37.33 |
B. | $38.16 |
C. | $38.83 |
D. | $40.30 |
E. | $42.00 |
-A share of Delta Inc. sells for $28.16. The stock is expected to pay $1.35 per share dividend next year. Expected growth in dividends is at 3 percent. What is the cost of equity for this stock?
A. 7.42 percent
B. 7.79 percent
C. 19.67 percent
D. 20.14 percent
E. 20.86 percent
-A building project will produce cash inflows of $2,800 a year for 4 years with a final cash inflow of $5,700 in year 5. The project's initial cost is $9,500. What is the net present value of this project if the required rate of return is 16 percent?
A. | -$311.02 |
B. | $1,048.75 |
C. | $4,650.11 |
D. | $9,188.98 |
E. | $11,168.02 |
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