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please see the attached file with five questions, kindly show the calculations and formulas thank you Week 3 - Risk and Return Problem Set 1
please see the attached file with five questions, kindly show the calculations and formulas thank you
Week 3 - Risk and Return Problem Set 1 Compute the price of a 3.6 percent coupon bond with 16 years left to maturity and a market interest rate of 5.8 percent. (Assume interest payments are semiannual.) Is this a discount or premium bond? 2 A 5.4 percent coupon bond with 15 years left to maturity is offered for sale at $1,065. What yield to maturity is the bond offering? (Assume interest payments are semiannual.) 3 Financial analysts forecast Company A's growth rate for the future to be 6 percent. The most recent dividend was $0.76. What is the value of Company A stock when the required return is 8 percent? 4 Company B recently paid a $0.42 dividend. The dividend is expected to grow at a 9 percent rate. At a current stock price o $48.75, what is the return shareholders are expecting? 5 Consider the following annual stock returns for the Ace Company and the King Company: year Ace King 1 24.50% -5.50% 2 -27.00% 15.50% 3 18.50% 4.75% 4 52.00% 46.25% 5 -18.00% -16.00% Compute each stock's average return, standard deviation, and coefficient of variation. Compare the risk and return for each stock. rket interest rate of 5.8 percent. What yield to maturity is the bond most recent dividend was $0.76. ent rate. At a current stock price ofStep by Step Solution
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