round 3 math

Round 3

#1 Homework #4A (Bond Current Yield)

For a bond selling for $946, with a par value of $1000 and a coupon rate of 9.13 percent, the current yield is __.

Round the answer to the decimal places in percentage form

Your Answer

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

Fresh Water, Inc. sold an issue of 5-year $1,000 par value bonds to the public. The bonds have a 10.30 percent coupon rate and pay interest annually. The current market rate of interest on the Fresh Water, Inc. bonds is 8.50 percent. What is the current market price of the bonds?

Round the answer to two decimal places.

Your Answer:

#3 Homework #4C (Value of the Bond Semi-Annually)

General Mills has a $1,000 par value, 30-year to maturity bond outstanding with an annual coupon rate of 9.56 percent per year, paid semiannually. Market interest rates on similar bonds are 10.14 percent. Calculate the bond’s price today.

Round the answer to two decimal places.

Your Answer:

#4 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:

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

Marco Chip, Inc. just issued zero-coupon bonds with a par value of $1,000. The bond has a maturity of 28 years and a yield to maturity of 14.95 percent, compounded semi-annually. What is the current price of the bond?

Round the answer to two decimal places.

Your Answer:

#6 Homework #4F (Bond Yield to Call. YTM and Price after original Issue)

8 years ago, Delicious Mills, Inc. issued 30-year to maturity bonds that had a 11.35 percent annual coupon rate, paid semiannually. The bonds had a $1,000 face value. Since then, interest rates in general have changed and the yield to maturity on the Delicious Mills bonds is now 8.06 percent. Given this information, what is the price today for a Delicious Mills bond?

Round the answer to two decimal places.

Your Answer:

#7 Homework #4G (Bonds Quotes)

Assume that today's date is February 15, 2015. Robin Hood Inc. bond is an annual-coupon bond. Par value of the bond is $1,000.  Calculate the bond's current yield.

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

Company	Price	Coupon Rate	Maturity Date	YTM	Current Yield	Rating
Robin Hood	123.507	11.897	2-15- 2030	-	?	D

Your Answer:

#8 Homework #5A (Value and Expected rate of return on preferred stock)

Golden Rod Corp.’s preferred stock is currently selling for $46.39. The company pays $6.04 annual dividends on this preferred stock. Which rate of return does the investor expect to receive on this stock if the stock is purchased today?

Round the answer to two decimal places in percentage form

Your Answer

#9 Homewok #5B (Value of Common Stock, Expected Rate of return on Common Stock)

The next year the common stock of Gold Corp. will pay a dividend of $7.94 per share. If the company is growing at a rate of 4.48 percent per year, and your required rate of return is 9.02 percent, what is Gold's company stock worth to you?

Round the answer to two decimal places.

Your Answer:

#10 Homework #5C (CAPM, Beta portfolio, Portfolio expected return)

You hold a portfolio with the following securities:

Security	Percent of portfolio	Beta
Stock A	33%	1.54
Stock B	13%	0.76
Stock C	Please calculate it	1.98

Calculate the beta portfolio.

Round the answers to two decimal places.

Your Answer: