Question

1. Statue Builders, Inc. took out a loan for $244,564 that has to be repaid in 9 equal annual installments. The APR on the loan is 6.49 percent. How much of the second payment is interest?

2. What is the price of a 28-year bond paying 7.9 % annual coupons with a face (par) value of $1,000 if an 28-year bond making semi-annual payments and paying 7.9 % sells at par? Answer to the nearest cent, xxx.xx and enter without the dollar sign.

Answer #1

Statue Builders, Inc. took out a loan for $240,304 that has to
be repaid in 11 equal annual installments. The APR on the loan is
6.24 percent. How much of the second payment is interest?

Statue Builders, Inc. took out a loan for $256,110 that has to
be repaid in 10 equal annual installments. The APR on the loan is
6.65 percent. How much of the second payment is interest?

What is the price of a 10-year bond paying an annual coupon rate
of 8.6%, but paying it semiannually, per face
(par) value of $1,000 if the annual market rates for these bonds
are 12.1%? Answer to the nearest cent, xxx.xx
What is the price of a 12-year bond paying 8.2% annual coupons with
a face (par) value of $1,000 if the market rates for these bonds
are 11.6%? Answer to the nearest cent, xxx.xx

What is the price of a 5-year bond paying an annual coupon rate
of 9.4%, but paying it semiannually, per face (par) value of $1,000
if the annual market rates for these bonds are
12.2%? Answer to the nearest cent, xxx.xx and
enter without the dollar sign.

F.E
9.If your stock pays a dividend D0 = $0.75 at
t = 0.and will experience a constant growth of 6.4 percent
forever into the future, what should be the price of the stock if
the required return for such stocks is 10.5 percent? Note:
The dividend shown above is at t = 0, not
t=1. Answer to the nearest cent,
xxx.xx and enter without the dollar sign.
10.What is the price of a 13-year bond paying 9.5% annual
coupons with...

F.E
23. In your two-stock portfolio, you invest $25 in stock A and
$75 in stock B. If the beta of stock A is 1.26 and the beta of
stock B is 0.6, your portfolio beta will be: Input your answer two
places to the right of the decimal point as in x.xx
24.What is the price of a 6-year bond paying an annual coupon
rate of 7.9%, but paying it semiannually, per face
(par) value of $1,000 if the...

What is the price of a 11-year bond paying 5 % annual coupons
with a face (par) value of $1,000 if the market rates for these
bonds are 6.4 %? Answer to the nearest cent.
A firm issues a 20-year semi-annual payment bond,
which is priced at $1213.55. The coupon rate of the bond is 9.00%.
The tax rate is 38 percent. What is the after-tax cost of debt?

Ying Imports has several bond issues outstanding, each making
semi-annual interest payments called coupons. These interest
payments represent an annuity, and though paid semi-annually, they
are quoted as an annual percent of face value. The face value
represents the amount that must be repaid when the loan matures,
and is usually equal to the original amount borrowed. Hence a 10%
annual coupon typically means that the company has a 10% annual
percentage interest rate (APR) on their loan, and pays...

Question 1
Jack took a $ 5,000 loan, which he repaid in
monthly installments over seven
months. Payments were always made at the end of
the month (each payment month was 1/12 part of the year)
so that the first repayment was made 4 months after the loan was
drawn down. Each equal installment consisted of an installment of
the loan amount of $ 5,000 / 7 and an interest component of $ 30
and an account management fee of...

Question 1
Jack took a $ 5,000 loan, which he repaid in
monthly installments over seven
months. Payments were always made at the end of
the month (each payment month was 1/12 part of the year)
so that the first repayment was made 4 months after the loan was
drawn down. Each equal installment consisted of an installment of
the loan amount of $ 5,000 / 7 and an interest component of $ 30
and an account management fee of...

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