Question

1: Use the “YIELD” function in Excel to find the yield to maturity of a bond with the following characteristics. The yield to maturity on this bond is over 7%.

Settlement |
5/17/2018 |

Maturity |
5/17/2028 |

Rate |
5% |

Price |
90 |

Redemption |
100 |

Frequency |
2 |

Basis |
0 |

True

False

**QUESTION 2**

Dilution of ownership is a benefit to an early stage venture capitalist because it indicates that other investors want a share of the same venture.

True

False

**QUESTION 3** It is standard practice for a term
sheet to require more than half the board seats to go to the seed
investors.

True

False

**QUESTION 4**

Entrepreneurs will never agree to offer information regarding the operations of the business to investors for fear of damaging their ability to raise further rounds of finance.

True

False

**QUESTION 5**

Term sheets protect the interests of investors by limiting certain actions of the founders.

True

False

Answer #1

1) Calculation of YIELD

Excel Formula in cell B9 to calculate
YIELD **=YIELD(B1,B2,B3,B4,B5,B6,B7)**

2) False

Dilution of ownership is a disadvantage, as the percentage of shareholding of the angel investor (early stage VC) decreases as more and more investors put in their money. The economic value of the angel investor's money reduces reduces as dilution increases.

3) True

Seed investors want to have as much control economic benefit as possible.

4) False

Entrepreneurs have to provide information about business operations, otherwise investors would not have confidence in the business and they might not invest.

5) True

QUESTION 26
Entrepreneurs will never give the Venture Capitalists the right
to participate in determining key corporate decisions. This would
give the Venture Capitalists to much power to dictate the
development of the company.
True
False
QUESTION 27
The right of first refusal and co-sale clause in a term sheet
will address the rights of a Venture Capitalist to either sell or
buy shares at the same terms as a proposed sale or purchase by a
founder or other shareholder....

Use the “YIELD” function in Excel to find the yield to maturity
of a bond with the following characteristics. The yield to maturity
on this bond is over 7%.
Settlement
5/17/2018
Maturity
5/17/2028
Rate
5%
Price
90
Redemption
100
Frequency
2
Basis
0
TRUE OR FALSE

QUESTION 6
A term sheet will address what happens to the shares of founders
should founders decide to leave the company.
True
False
QUESTION 7
A Drag-Along clause in a term sheet will address the rights of
shareholders who control a majority of shares relative to
shareholders who control a minority of shares.
True
False
QUESTION 8
When a subsequent round of financing takes place at a lower
price per share than previous round of financing; existing
shareholders would suffer...

QUESTION 16
Preemption rights give a Venture Capitalist the right to buy
shares in future rounds of financing to preserve their current
interest in the company.
True
False
QUESTION 17
Venture capitalists will typically conduct an investigation of
the founders and of the company to assure themselves that there has
not been and there is not currently any illegal activity being
conducted that could damage the company.
True
False
QUESTION 18
Term sheets are used to work out the natural...

True/False for the following:
1) Dilution of ownership is a benefit to an early stage venture
capitalist because it indicates that other investors want a share
of the same venture.
2) The sole objective of a term sheet from the investor’s point
of view is to maximize their upside in the event of an exit.
3) The right of first refusal and co-sale clause in a term sheet
will address the rights of a Venture Capitalist to either sell or...

Bank X has $10 billion dollars of thirty year mortgages as
assets and $8 billion of FDIC insured deposits with an average
maturity of 1 month. If the yield on thirty year mortgages
increases by 150 basis points and the increase in deposit rates
increase by 50 basis points the net worth of the bank will:
Decrease
First increase and then decrease
Remain the same
Increase
If the yield curve shifts up in (interest rates along the curve
all change...

PLEASE PUT THE FORMULA OF EXCEL. THANK YOU
You find a zero coupon bond with a par value of $10,000 and 17
years to maturity. The yield to maturity on this bond is 4.9
percent. Assume semiannual compounding periods.
What is the price of the bond? (Do not round
intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
d6 Settlement date: 1/1/2000
d7 maturity date:1/1/2017
d8: coupon rate: 0.00%
d9: coupons per year: 2
d10: redemption value:...

Question 1 of 71
The yield to maturity on a coupon bond is …
· always greater than the
coupon rate.
· the rate an investor
earns if she holds the bond to the maturity date, assuming she can
reinvest all coupons at the current yield.
· the rate an investor earns
if she holds the bond to the maturity date, assuming she can
reinvest all coupons at the yield to maturity.
· only equal to the internal
rate of return of a bond...

Finance
1. A bond has a $1,000 par value, 10 years to maturity, and an
8% annual coupon and sells for $980.
a. What is its yield to maturity (YTM)? Round your answer to two
decimal places.
__%
b. Assume that the yield to maturity remains constant for the
next four years. What will the price be 4 years from today?Do not
round intermediate calculations. Round your answer to the nearest
cent.
$____
2. Nesmith Corporation's outstanding bonds have a...

1. A 3-year annual coupon bond has a yield to maturity of 8%,
coupon rate of 5%. The face value of the bond is $1,000.
a. What is the price of the bond? Is it premium bond or discount
bond?
b. Suppose one year later immediately after you receive the
first coupon payment, the yield to maturity drops to 7%. What would
be your holding period return if you decide to sell the bond at the
market price then?
c....

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