Risk and Return Problem Sets
rose.angel13** Please see attached file ** (excel spreadsheet and problem to solve 9-33 )
Complete the following problem sets from Chapter 7 in Microsoft® Excel®:
- 7-21 Compute Bond Price Compute the price of a 3.8 percent coupon bond with 15 years left to maturity and a market interest rate of 6.8 percent. (Assume interest payments are semiannual.) Is this a discount or premium bond? (LG7-4)
- 7-27 Yield to Maturity A 5.65 percent coupon bond with 18 years left to maturity is offered for sale at $1,035.25. What yield to maturity is the bond offering? (Assume interest payments are semiannual.)
Complete the following problem sets from Chapter 8 in Microsoft® Excel®:
- 8-19 Value a Constant Growth Stock Financial analysts forecast Safeco Corp.’s (SAF) growth rate for the future to be 8 percent. Safeco’s recent dividend was $0.88. What is the value of Safeco stock when the required return is 12 percent?
- 8-21 Expected Return Ecolap Inc. (ECL) recently paid a $0.46 dividend. The dividend is expected to grow at a 14.5 percent rate. At a current stock price of $44.12, what is the return shareholders are expecting?
Complete the following problem sets from Chapter 9 in Microsoft® Excel®:
9-33 Risk, Return, and Their Relationship Consider the following annual returns of Estee Lauder and Lowe’s Companies:
Estee Lauder Lowe's Companies
Year 1 23.4% -6.0%
Year 2 -26.0 16.1
Year 3 17.6 4.2
Year 4 49.9 48.0
Year 5 -16.8 -19.0
- 8 years ago
- 10
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- fin370_week_3_tutorial.xlsx
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- finance.xlsx
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- risk_and_return_problem_sets_rose_angel.xlsx