versitesi Question 1: ABC Trucking has issued an 14-percent, 10-year bond that pays interest semiannually. If the market prices the bond to yield an effective annual rate of 18 percent What is the price of the bond? (5 POINT). Question 2: You have just found the perfect home. However, in order to buy it, you will need to take out a TRL 500,000, 10-year mortgage at an annual rate of 18 percent What will your monthly mortgage payments be? (5 POINT). Question 3: Consider the stock of BIC Company has an annual dividend of $ 3 in 2021. The dividend is expected to grow at a constant rate of 7 percent permanently in 2022 The market requires a 14 percent return on the company. What is the current price of the stock? (5 POINT). Question 4: Turkish Treasury has issued 18 percent T-Bill. If the market prices is an annual rate of 14 percent and TBill has 148 days to maturity, what is the price of this T-Bill? (5 POINT). Question 5: Your parents started to deposit monthly $2,000 in the bank 2 years after your birth. The bank offers a fixed interest rate of 6 percent. On your 18th birthday, your parents decide to withdraw the money that they deposited to pay for your college tuition How much money can they expect to withdraw? (10 POINT). Question 6: What is the present value of your end-of-year investment of $1,000 per year, with the first cash flow received four years from today and the last one 10 years from today? Use a discount rate of 18 percent (10 POINT). Question 7: The last dividend paid by ABC company is 8 TL. The dividend is expected to grow by 5% next year, 4% in the second year, % 5 third year and 3% in the following years. If the expected return rate of investors (k) is 14%. What is the value of this stock today (PO)? (10 POINT). Question 8: Assume that we wish to determine the expected value and standard deviation of returns of Assets A. The expected returns of assets A and probabilty for each of the next 5 years are given in columns 1 and 2 respectively in the table Find the expected value and standard deviation of returns for Asset A (10 POINT). Year Asset A Prob. 2022 18,00 0,25 2023 16,00 0,20 2024 13,00 0,15 2025 9,00 0,20 2026 11,00 0,20 Question 9: You have a opportunity to make a investment that has $10,000,000 landing, 1.500.000 machine, outsourcing 500.000 and finance cost 1.000.000. Machines have no scrap value at end of 4th year. You will pay interest payment at the end of 3rd year, that is $400.000. If you make this investment now, you will receive $4.500,000 one year from today, $3.000.000, $5,000,000 and $4,000,000 respectively. The appropriate discount rate for this investment is 14 percent Tax rate is % 20. Should you make the investment? (20 POINT). Question 10: Assume that you are nisk manager at BIC Investment BIC firm wants to fix currency rate for 5.000.000 USD export transaction in 120 days and 3.000.000 EURO import transaction in 180 days from AC Bank Find bid and ask forward rate of AC Bank by using exchange rates and interest rates below. (20 POINT). USD/TL 13,3725/13,9850 EURO/TL 15.2700/15,4250 USD interest rate 0,50/1,00 EURO interest rate 1,25/2,50 TL interest rate 21.00/27,00 versitesi Question 1: ABC Trucking has issued an 14-percent, 10-year bond that pays interest semiannually. If the market prices the bond to yield an effective annual rate of 18 percent What is the price of the bond? (5 POINT). Question 2: You have just found the perfect home. However, in order to buy it, you will need to take out a TRL 500,000, 10-year mortgage at an annual rate of 18 percent What will your monthly mortgage payments be? (5 POINT). Question 3: Consider the stock of BIC Company has an annual dividend of $ 3 in 2021. The dividend is expected to grow at a constant rate of 7 percent permanently in 2022 The market requires a 14 percent return on the company. What is the current price of the stock? (5 POINT). Question 4: Turkish Treasury has issued 18 percent T-Bill. If the market prices is an annual rate of 14 percent and TBill has 148 days to maturity, what is the price of this T-Bill? (5 POINT). Question 5: Your parents started to deposit monthly $2,000 in the bank 2 years after your birth. The bank offers a fixed interest rate of 6 percent. On your 18th birthday, your parents decide to withdraw the money that they deposited to pay for your college tuition How much money can they expect to withdraw? (10 POINT). Question 6: What is the present value of your end-of-year investment of $1,000 per year, with the first cash flow received four years from today and the last one 10 years from today? Use a discount rate of 18 percent (10 POINT). Question 7: The last dividend paid by ABC company is 8 TL. The dividend is expected to grow by 5% next year, 4% in the second year, % 5 third year and 3% in the following years. If the expected return rate of investors (k) is 14%. What is the value of this stock today (PO)? (10 POINT). Question 8: Assume that we wish to determine the expected value and standard deviation of returns of Assets A. The expected returns of assets A and probabilty for each of the next 5 years are given in columns 1 and 2 respectively in the table Find the expected value and standard deviation of returns for Asset A (10 POINT). Year Asset A Prob. 2022 18,00 0,25 2023 16,00 0,20 2024 13,00 0,15 2025 9,00 0,20 2026 11,00 0,20 Question 9: You have a opportunity to make a investment that has $10,000,000 landing, 1.500.000 machine, outsourcing 500.000 and finance cost 1.000.000. Machines have no scrap value at end of 4th year. You will pay interest payment at the end of 3rd year, that is $400.000. If you make this investment now, you will receive $4.500,000 one year from today, $3.000.000, $5,000,000 and $4,000,000 respectively. The appropriate discount rate for this investment is 14 percent Tax rate is % 20. Should you make the investment? (20 POINT). Question 10: Assume that you are nisk manager at BIC Investment BIC firm wants to fix currency rate for 5.000.000 USD export transaction in 120 days and 3.000.000 EURO import transaction in 180 days from AC Bank Find bid and ask forward rate of AC Bank by using exchange rates and interest rates below. (20 POINT). USD/TL 13,3725/13,9850 EURO/TL 15.2700/15,4250 USD interest rate 0,50/1,00 EURO interest rate 1,25/2,50 TL interest rate 21.00/27,00