Financial literacy

You purchase 700 shares of 2nd Chance Co. stock on margin at a price of $46. You

You purchase 700 shares of 2nd Chance Co. stock on margin at a price of $46. Your broker requires you to deposit $16,500. What is the initial margin requirement? (Do not round int…

You purchase 800 shares of 2nd Chance Co. stock on margin at a price of $42. You

You purchase 800 shares of 2nd Chance Co. stock on margin at a price of $42. Your broker requires you to deposit $17,000. Suppose you sell the stock at a price of $51. What is you…

You purchase 950 shares of 2nd Chance Co stock on margin at a price of $43. Your

You purchase 950 shares of 2nd Chance Co stock on margin at a price of $43. Your broker requires you to deposit $22.000. a. Suppose you sell the stock at a price of $47. What is y…

You purchase a 3-year $10,000 corporate bond with a coupon rate of 4% in June of

You purchase a 3-year $10,000 corporate bond with a coupon rate of 4% in June of 1929. In October of that same year, on Black Tuesday, the stock market crashes and interest rates …

You purchase a Treasury-bond futures contract with an initial margin requirement

You purchase a Treasury-bond futures contract with an initial margin requirement of 15% and a futures price of $114,550. The contract is traded on a $100,000 underlying par value …

You purchase a Treasury-bond futures contract with an initial margin requirement

You purchase a Treasury-bond futures contract with an initial margin requirement of 15% and a futures price of $115,850. The contract is traded on a $100,000 underlying par value …

You purchase a Treasury-bond futures contract with an initial margin requirement

You purchase a Treasury-bond futures contract with an initial margin requirement of 15% and a futures price of $115,850. The contract is traded on a $100,000 underlying par value …

You purchase a Treasury-bond futures contract with an initial margin requirement

You purchase a Treasury-bond futures contract with an initial margin requirement of 15% and a futures price of $114,050. The contract is traded on a $100,000 underlying par value …

You purchase a boat for $35,000 and pay $5,000 down. You also agree to pay the r

You purchase a boat for $35,000 and pay $5,000 down. You also agree to pay the rest over the next 10 years in 10 equal end-of-the year payments plus 13 percent compound interest o…

You purchase a bond for $875. It pays $80 a year (that is, the semiannual coupon

You purchase a bond for $875. It pays $80 a year (that is, the semiannual coupon is 4%), and the bond matures after 10 years. What is the yield to maturity? Determine the current …

You purchase a call option for $3.45 17 days ago. The call has a strike of 45 an

You purchase a call option for $3.45 17 days ago. The call has a strike of 45 and the stock is now trading for 51 . If you exercise the call today, what will be your holding perio…

You purchase a house that costs $625,000 with a 8%, 30-year mortgage. In order t

You purchase a house that costs $625,000 with a 8%, 30-year mortgage. In order to avoid PMI insurance, you decide to follow a conforming mortgage by making a down payment of 20%. …

You purchase a house today for $250,000. You pay a 10% deposit and borrow the re

You purchase a house today for $250,000. You pay a 10% deposit and borrow the remainder. (a) If repayments for the borrowing are made each month over the next 20 years, what will …

You purchase a new house for $150,000 with a 10% down payment. The bank offers y

You purchase a new house for $150,000 with a 10% down payment. The bank offers you two loan options - both of them for 30 years. Option 1 is an annual interest rate of 6% compound…

You purchase a new house for $200,000 with a 5% down payment. You obtain a 30-ye

You purchase a new house for $200,000 with a 5% down payment. You obtain a 30-year loan at 5% compounded monthly and will make monthly payments on the loan. Closing costs are $1,5…

You purchase a put option on British pounds for $.03 per unit. The exercise pric

You purchase a put option on British pounds for $.03 per unit. The exercise price is $1.36. A pound option represents 31,250 units. At the time of the purchase, the spot rate of t…

You purchase a three year, $1,000 face value, semi-annual coupon bond for $950.

You purchase a three year, $1,000 face value, semi-annual coupon bond for $950. The annual coupon rate is 6%. Exactly one year later, you have received two coupons and then sell t…

You purchase an automobile for $20, 000. After some research, you learn that you

You purchase an automobile for $20, 000. After some research, you learn that you can expect the costs and salvage values shown in the table below. The maintenance, insurance, and …

You purchase one IBM October 160 put contract for a premium of $5.35. What is yo

You purchase one IBM October 160 put contract for a premium of $5.35. What is your maximum possible profit? (See Figure 15.1.) Assume each contract is for 100 units. PLEASE SHOW A…

You purchased $50,000 worth of stock in a Mexican corporation when the exchange

You purchased $50,000 worth of stock in a Mexican corporation when the exchange rate was 10 pesos per dollar and the share price was 25 pesos. During the time you held the stock, …

You purchased 1,000 shares of GHI Holdings common stock at a price of $22 per sh

You purchased 1,000 shares of GHI Holdings common stock at a price of $22 per share. A year later, immediately after the company paid a divided of $1.50 per share, you liquidated …

You purchased 1,000 shares of stock ABC for $34 per share and 300 shares of stoc

You purchased 1,000 shares of stock ABC for $34 per share and 300 shares of stock XYZ for $240 per share exactly one year ago. During the year, stock ABC paid a $1.60 dividend per…

You purchased 1,000 shares of the New Fund at a price of $20 per share at the be

You purchased 1,000 shares of the New Fund at a price of $20 per share at the beginning of the year. You paid a front-end load of 4%. The securities in which the fund invests incr…

You purchased 1,000 shares of the New Fund at an NAV of $27 per share at the beg

You purchased 1,000 shares of the New Fund at an NAV of $27 per share at the beginning of the year. You paid a front-end load of 2%. The securities in which the fund invests incre…

You purchased 10,000 shares of Wal-Mart. You expect the stock price to change si

You purchased 10,000 shares of Wal-Mart. You expect the stock price to change significantly in the next month, but you are unsure whether it will increase or decrease. Your broker…

You purchased 1000 shares of stock in Cumberland Software for $3 per share on Ja

You purchased 1000 shares of stock in Cumberland Software for $3 per share on January 1, 2006. Over the next four years you received 7 cents per share annually in dividends. On De…

You purchased 1000 shares of stock in Cumberland Software for $3 per share on Ja

You purchased 1000 shares of stock in Cumberland Software for $3 per share on January 1, 2006. Over the next four years you received 7 cents per share annually in dividends. On De…

You purchased 2,400 shares in the New Pacific Growth Fund on January 2, 2016, at

You purchased 2,400 shares in the New Pacific Growth Fund on January 2, 2016, at an offering price of $28.90 per share. The front- -ithin onad yo total ret 0 end load for this fun…

You purchased 2,400 shares in the New Pacific Growth Fund on January 2, 2016, at

You purchased 2,400 shares in the New Pacific Growth Fund on January 2, 2016, at an offering price of $28 per share. The front-end load for this fund is 7 percent, and the back-en…

You purchased 200 shares of H2O Corporation stock at a price of $20. Consider ea

You purchased 200 shares of H2O Corporation stock at a price of $20. Consider each of the following announcements separately. What will the price of the stock be after each change…

You purchased 3,000 shares in the New Pacific Growth Fund on January 2, 2010, at

You purchased 3,000 shares in the New Pacific Growth Fund on January 2, 2010, at an offering price of $63.10 per share. The front-end load for this fund is 5 percent, and the back…

You purchased 3,200 shares in the New Pacific Growth Fund on January 2, 2016, at

You purchased 3,200 shares in the New Pacific Growth Fund on January 2, 2016, at an offering price of $47.50 per share. The front end load for this fund is 4 percent, and the back…

You purchased 3,800 shares in the New Pacific Growth Fund on January 2, 2010, at

You purchased 3,800 shares in the New Pacific Growth Fund on January 2, 2010, at an offering price of $42.00 per share. The front-end load for this fund is 5 percent, and the back…

You purchased 300 shares of a particular stock at the beginning of the year at a

You purchased 300 shares of a particular stock at the beginning of the year at a price of $76.63. The stock paid a dividend of $1.60 per share, and the stock price at the end of t…

You purchased 4,200 shares in the New Pacific Growth Fund on January 2, 2010, at

You purchased 4,200 shares in the New Pacific Growth Fund on January 2, 2010, at an offering price of $63.50 per share. The front-end load for this fund is 5 percent, and the back…

You purchased 4,200 shares in the New Pacific Growth Fund on January 2, 2016, at

You purchased 4,200 shares in the New Pacific Growth Fund on January 2, 2016, at an offering price of $63.50 per share. The front-end load for this fund is 5 percent, and the back…

You purchased 4,600 shares in the New Pacific Growth Fund on January 2, 2010, at

You purchased 4,600 shares in the New Pacific Growth Fund on January 2, 2010, at an offering price of $34.20 per share. The front-end load for this fund is 5 percent, and the back…

You purchased 4,800 shares in the New Pacific Growth Fund on January 2, 2010, at

You purchased 4,800 shares in the New Pacific Growth Fund on January 2, 2010, at an offering price of $29.70 per share. The front-end load for this fund is 5 percent, and the back…

You purchased 440 shares of stock at a price of $50.16 per share. Over the last

You purchased 440 shares of stock at a price of $50.16 per share. Over the last year, you have received total dividend income of $505. What is the dividend yield? A stock has had …

You purchased 5, 600 shares in the New Pacific Growth Fund on January 2, 2010, a

You purchased 5, 600 shares in the New Pacific Growth Fund on January 2, 2010, at an offering price of $48.3 per share. The front-end load for this fund is 5 percent, and the back…

You purchased 5,200 shares in the New Pacific Growth Fund on January 2, 2010, at

You purchased 5,200 shares in the New Pacific Growth Fund on January 2, 2010, at an offering price of $56.50 per share. The front-end load for this fund is 5 percent, and the back…

You purchased 5,400 shares in the New Pacific Growth Fund on January 2, 2010, at

You purchased 5,400 shares in the New Pacific Growth Fund on January 2, 2010, at an offering price of $63.90 per share. The front-end load for this fund is 5 percent, and the back…

You purchased 5,800 shares in the New Pacific Growth Fund on January 2, 2010, at

You purchased 5,800 shares in the New Pacific Growth Fund on January 2, 2010, at an offering price of $34.60 per share. The front-end load for this fund is 5 percent, and the back…

You purchased a $1,000 five percent coupon bond that matures in 10years. How muc

You purchased a $1,000 five percent coupon bond that matures in 10years. How much would your bond be worth if interest rates fall to 4% theday after you purchase the bond? What wo…

You purchased a bond with the following characteristics: $1,000 par value 6.5% c

You purchased a bond with the following characteristics: $1,000 par value 6.5% coupon, annual payments 25 years to maturity Callable in 7 years at $1,065. You paid $1063.92 for th…

You purchased a machine for $1.18 million three years ago and have been applying

You purchased a machine for $1.18 million three years ago and have been applying straight-line depreciation to zero for a seven-year life. Your tax rate is 38%. If you sell the ma…

You purchased a machine for $500,000 (installed), and you depreciated it using a

You purchased a machine for $500,000 (installed), and you depreciated it using a 5 year MACRS. This machine generates $200,000 in annual revenue. In year 4, you sold the machine f…

You purchased a machine for $500,000 (installed), and you depreciated it using a

You purchased a machine for $500,000 (installed), and you depreciated it using a 5 year MACRS. This machine generates $200,000 in annual revenue. In year 4, you sold the machine f…

You purchased a stock at the end of the prior year at a price of $85. At the end

You purchased a stock at the end of the prior year at a price of $85. At the end of this year the stock pays a dividend of $2.20 and you sell the stock for $92. What is your retur…

You purchased a stock at the end of the prior year at a price of $86. At the end

You purchased a stock at the end of the prior year at a price of $86. At the end of this year the stock pays a dividend of $2.30 and you sell the stock for $90. What is your retur…