A 10 years discount bond with a face value $1,000 is now sold for. What is the P
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A 10 years discount bond with a face value $1,000 is now sold for. What is the PV of the at the discount rate of 51%? (discount bond-no paying bond) $125.36 What is the databse? A market maker in one or more securities on the floor of the NYSE is called Limitless Energy, Inc. is considering to issue 8.8% semi-annual coupon bonds with 15 years to maturity. The bonds are selling at $965.75 with a per value of $1, 000. What rate of return are investors expected to earn York, inc. Issued 6% semi-annual coupon bonds outstanding with 10 years to maturity. The bond's per value is $1,000 and expected to earn $42%. What is the current yield for York, Inc? Which stock has a residual claim? Given Do = $1.00 and K = 10% what is the value of the stock at 8% growth rate If the current price of the stock is $50, would you buy it? Given D_i = $1.08 and the dividends are expected to growth at 8%, what is the ROI for this stock. If the current price is $60? If the required rate of return is 10% would you buy it? For a company which projects total net income to be $200 m with 100 m common stock shares outstanding, what is the value of the company's common stock share if the industry average P/E is 10? Which one is computed by dividing next year's annual dividend by the current stock price? Which statement is correct? You are considering to invest in two securities, A and B. Note that the Prob (Good) = 60%, Prob (Bad) = 40%. You have $3,000 out of $100,000, total amount of money available, invested in security A and the rest invested in B. What is the portfolio's expected return? Townson Co's stock had a required return of 12% last year, when the risk-free rate was 2% and the market return was 7%. Then an increase in investor risk aversion caused the market risk premium to rise by 1%. The risk-free rate and the firm's beta remain unchanged. What is the company's required rate of return?Explanation / Answer
13)PV of the bond=1000/1.05^10=$613.91
14)unsecured bond is called debenture
22)P/E=10 EPS=200mn/100m=2
P=10*2=20
23)Dividend yield definition is expected dividend/stock price
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