MATH

1) Homework #3B (FV and PV of annuity non-annually)

You are going to save money for your son’s education. You have decided to place $2,087 every half year at the end of the period into a saving account earning 10.16 percent per year, compounded semi-annually for the next 4 years. How much money will be in the account at the end of that time period?

Round the answer to two decimal places.

Your Answer:

2) Homework #3C (How much will each annual payment be (Using FV or PV))

You plan to buy the house of your dreams in 14 years. You have estimated that the price of the house will be $94,527 at that time. You are able to make equal deposits every month at the end of the month into a savings account at an annual rate of 6.37 percent, compounded monthly. How much money should you place in this savings account every month in order to accumulate the required amount to buy the house of your dreams? 

Round the answer to two decimal places.

Your Answer:

3) Homework #3E (Perpetuity, EAR, RRR)

Assume that the inflation rate during the last year was 1.34 percent. US government T-bills had the nominal rates of return of 4.80 percent. What is the real rate of return for a T-bill?

Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)

Your Answer:

4) Homework #4 A (Bond Current Yield)

A $1,000 par value bond with a 6.19 percent coupon rate, currently selling for $1,018, has a current yield of___

Round the answer to two decimal places in percentage form.

Your answer

5) Homework #4D (YTM annually, semi-annually)

A few years ago, Spider Web, Inc. issued bonds with a 12.03 percent annual coupon rate, paid semiannually. The bonds have a par value of $1,000, a current price of $1,079, and will mature in 20 years. What would the annual yield to maturity be on the bond if you purchased the bond today?

Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)

You should use Excel or financial calculator.

Your Answer:

6) Homework #4E (zero-coupon bond)

13 years ago, Blue Lake Corp. issued 30 year to maturity zero-coupon bonds with a par value of $5,000. The current interest rate on this type of bond is 7.41 percent, compounded annually. What is the current price of the bond?

Round the answer to two decimal places.

Your Answer:

7) Homework #2D (FV and PV of Ordinary Annuity Annually)

What is the accumulated sum of the following stream of payments? $2,693 every year at the end of the year for 12 years at 5.92 percent, compounded annually.

Round the answer to two decimal places.

Your Answer:

8) Homework #2E (PV of Mixed Stream)

You are given an investment to analyze. The cash flows from this investment are

End of year 1.   $20,630 2.   $1,880 3.   $7,220 4.   $22,920 5.   $7,530

What is the present value of this investment if 15 percent per year is the appropriate discount rate?

Round the answer to two decimal places.

Your Answer:

9) Homework #3A (FV and PV of annuity due annually)

What is the accumulated sum of the following stream of payments?

$3,943 every year at the beginning of the year for 5 years, at 9.53 percent, compounded annually.

Round the answer to two decimal places

Your Answer

10) Homework #3D (FV of mixed stream)

You are given an investment to analyze. The cash flows from this investment are

End of year

$1,378

$3,815

$711

$2,712

$1,136

What is the future value of this investment at the end of year five if 5.13 percent per year is the appropriate interest (discount) rate?

Round the answer to two decimal places.

Your Answer:

11) Homework #5D (Expected return and Standard deviation on stock using probabilities)

Calculate the expected return on stock of Gamma Inc.:

Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box)

Your Answer:

Question 1 options:

Calculate the expected standard deviation on stock:

Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box)

Your Answer:

Question 2 options:

12) Homework #4B (Value of the Bond annually)

What is the value of a bond that has a par value of $1,000, a coupon rate of 9.46 percent (paid annually), and that matures in 11 years? Assume a required rate of return on this bond is 8.31 percent.

Round the answer to two decimal places.

Your Answer: