Question

please answer all questions and i will rate thumb up :)

A bond maturing in 10 years pays RM80 each year and RM1,000 upon maturity. Assuming 10 percent to be the appropriate discount rate, the present value of the bond is

Select one:

a. RM877.11.

b. RM1,000.00.

c. RM1,785.67.

d. RM416.39.

Jimmy just bought a new Perodua Bezza for his business. The price of the vehicle was RM40,000. Jimmy made a RM5,000 down payment and took out an amortized loan for the rest. The car dealership made the loan at 8% interest compounded monthly for five years. He is to pay back the principal and interest in equal monthly installments beginning one month from now. Determine the amount of Jimmy's monthly payment.

Select one:

a. RM745.87

b. RM709.67

c. RM634.56

d. RM809.33

Megat Bhd just paid a dividend of RM1.33. Its stock has a dividend growth rate of 7.6% and a required return of 12.21%. What is the current stock price if we anticipate dividends stopping in 10 years?

Select one:

a. RM21.03

b. RM31.04

c. RM10.64

d. RM11.92

Answer #1

1)

Riley purchased a $100 par value bond with 4% annual coupons,
maturing in 10 years, and redeemable at par. She bought the bond at
a premium to yield 3% per annum. One year later, just after the
first coupon, the bond was called in at $107.
Riley's yield rate on this investment is?

please answer all questions!!!
1. A loan may be repaid using the following two options of
payments: i) Payments of 2,000 at the end of each year for eighteen
years ii) Payments of 2,500 at the end of each year for nine years.
Which of the following is closest to the effective annual interest
rate being paid on the loan?
A. 14% B. 17%. C. 20%. D.23%. E. 26%
2. A loan is being repaid by payments of 1100 at...

Please Answer all question please don't answer just one question
if you can't all. Answer all please.
6. Exxon Mobil has preferred shares with a yield
of 5.14%. If the quarterly dividend is $1.92, what is the value of
a share?
7. You have accumulated $1,145 in debt by buying
things on Amazon during quarantine. The minimum monthly
payment is $22, If you make only the minimum payment, it will take
you 94 months to pay it off. How much total...

Q1:
Jill borrows $300,000 for 10 years at a fixed interest rate of
i % p.a (EAR). If the loan is repaid in 10 equal year-end
payments over the 10 years, the amount of the loan outstanding at
the end of the 5th year will be:
Select one:
a. Equal to $150,000
b. Less than $150,000
c. Greater than $150,000
Q2:
Jack deposits the following amounts in a savings plan which pays
5.4% per annum, compounded monthly:
$2435 today,
$1400...

If a zero-coupon bond has a stated annual interest rate of 10%,
compounded twice-a-year, how many years will it take to double the
value of the bond? (Assume that the bond will double in value
before it matures)
Select one:
a. 7.1
b. 7.27
c. 28.52
d. 10.5
e. 5.43

Module 3 Bond Valuation Worksheet – Complete in Excel.
Please answer the following questions.
1. Renfro Rentals has issued bonds that have an 7% coupon
rate, payable semiannually. The bonds mature in 10 years, have a
face value of $1,000, and a yield to maturity of 8%. What is the
price of the bonds?
2. Thatcher Corporation’s bonds will mature in 30 years. The
bonds have a face value of $1,000 and an 7% coupon rate, paid
semiannually. The price...

Today is T=0. You borrow $200,000 today at a rate of interest
of 6%. You agree to repay the loan in 4 equal, annual installments.
The first payment is to be made at T=1. What is the
amount of the principal reduction associated with the third
payment?
Today is T=0. A company paid a dividend of $2.40 yesterday.
Dividends are expected to grow at a rate of 10% for three years, 8%
for one year and then at a rate...

Suppose a 10-year TIPS bond with an original principal of
$100,000 and 4 percent coupon rate paid semiannually. If the
inflation rate for first and second six-month period is 0.5
percent, and then the inflation rate becomes 1 percent for every
six months until the end of maturity. What is the coupon payment at
the end of second year?
Select one:
a. $2,060.65
b. $2,102.07
c. $2,144.32
d. $2,187.42
e. None of the above

Bond A and bond B both pay annual coupons, mature in 9 years,
have a face value of $1000, pay their next coupon in 12 months, and
have the same yield-to-maturity. Bond A has a coupon rate of 6.5
percent and is priced at $1,055.13. Bond B has a coupon rate of 7.4
percent. What is the price of bond B?
a.
$1,117.15 (plus or minus $4)
b.
$995.40 (plus or minus $4)
c.
$1,055.13 (plus or minus $4)
d....

Gerald has taken out a loan of $100,000 today to start a
business. He has agreed to repay the loan on the following
terms:
• Repayments will be made on a monthly basis. The first
repayment will be made exactly one month from today.
• The repayments for the first 5 years will cover interest
only to help reduce the financial burden for Gerald’s business at
the start.
• After the 5-year interest-only period, Gerald will make
level monthly payments...

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