You have observed the following returns on ABC's stocks over the last five years: 3.8%, 9.4%, 12.4%, 10.3%, 2.7%

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1)You have observed the following returns on ABC's stocks over the last five years: 3.8%, 9.4%, 12.4%, 10.3%, 2.7%
What is the arithmetic average returns on the stock over this five-year period.
2)You have observed the following returns on ABC's stocks over the last five years: 3.4%, 9.1%, -3.4%, 12.8%, -4.4%
What is the geometric average returns on the stock over this five-year period.
3)You have observed the following returns on ABC's stocks over the last five years: 2.4%, 8.8%, -8.4%, 10%, -4.8%
What is the arithmetic average returns on the stock over this five-year period.
4)You have observed the following returns on ABC's stocks over the last five years: 4.9%, 9.1%, 10.3%, 11.8%, 7.6%
What is the geometric average returns on the stock over this five-year period.
5)Suppose the returns for Stock A for last six years was 4%, 7%, 8%, -2%, 9%, and 7%.
Compute the standard deviation of the returns.
10)You paid $804 for a corporate bond that has a 10.65% coupon rate. What is the current yield? Hint: if nothing is mentioned, then assume par value = $1,000
11)ABC has issued a bond with the following characteristics: Par: $1,000; Time to maturity: 17 years; Coupon rate: 5%;
Assume annual coupon payments. Calculate the price of this bond if the YTM is 11.94%
12)The 12.35 percent coupon bonds of the Peterson Co. are selling for $892.32. The bonds mature in 5 years and pay interest semi-annually. These bonds have current yield of _____ percent.
Enter your answer in percentages rounded off to two decimal points.
13)Assume that you wish to purchase a 12-year bond that has a maturity value of $1,000 and a coupon interest rate of 11%, paid semiannually. If you require a 7.6% rate of return on this investment (YTM), what is the maximum price that you should be willing to pay for this bond? That is, solve for PV.
14)The 4.74 percent, $1,000 face value bonds of Tim McKnight, Inc., are currently selling at $1,029.19. What is the current yield?
19)ABC has issued a bond with the following characteristics:
Par: $1,000; Time to maturity: 8 years; Coupon rate: 4%;
Assume semi-annual coupon payments. Calculate the price of this bond if the YTM is 7.9%
26)ABC wants to issue 11-year, zero coupon bonds that yield 7.79 percent. What price should they charge for these bonds if they have a par value of $1,000? That is, solve for PV. Assume annual compounding.
Hint: zero coupon bonds means PMT = 0

    • 12 years ago
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