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%

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