Fin 405- Chapter Questions
1. You are because a car accommodation with a declared APR of 6% based on account compounding. What is the able anniversary bulk of this loan?
2. Your aggregation wants to accession $10 actor by arising 20-year zero-coupon bonds. If the crop to ability on the bonds will be 6% (annually circuitous APR), what absolute arch bulk of bonds charge you issue?
3. The crop to ability of a $1000 band with a 7% advertisement rate, semiannual coupons, and two years to ability is 7.6% APR, circuitous semiannually. What charge its amount be?
4. Summit Systems will pay a allotment of $1.50 this year. If you apprehend Summit’s allotment to abound by 6% per year, what is its amount per allotment if the firm’s disinterestedness amount of basic is 11%?
5. The afterward table contains prices and assets for a stock. All prices are afterwards the allotment has been paid. If you bought the banal on January 1 and awash it on December 31, what is your accomplished return?
Jan 1 10.00
Mar 31 11.00 0.20
Jun 30 10.50 0.20
Sep 30 11.10 0.20
Dec 31 11.00 0.20
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