please answer every questions and give the clear steps of each questions with clearly wrting or typing please. it’s better to type the answers. many thanks! Exercise 2 Bond X and Y are two corporate bonds, bond X pays 8% coupon rate semiannually. Bond Y pays 20% coupon rate semiannually. Both bonds have 8 years to maturity, a £100.00 par value and have an annual […]

Calculate the nominal rate of interest (to the nearest 0.01%)componded quarterly for an investment of $1800 that matures to$2299.16 in 2 years and 9 months. – I got nominal interest rate of interest to be 37.233%. I amnot sure if this is correct. Please guide.   GraduateWriterHelp.com is an online academic writing platform that provides extensive assistance to graduate school students as they work through […]

Suppose you are buying your first home, a condominium, for $300,000. The down payment is $15,000 and you have arranged for a 30-year amortized mortgage at a 6.5% nominal rate of interest with the first payment due in one-month. If you pay an additional $500 per month in addition to the monthly payment, how soon will the mortgage be paid-off? GraduateWriterHelp.com is an online academic […]

1) Understanding internal rate ofretum A one period investment requires an outlay of 100 today and will generate $120 a year later. The required rate ofreturn for the investment is 10%. a. What is the NPV for the investment? b. What is the intemal rate ofreturn for the investment? c. Comments on the difference between the re rate ofreturn and internal rate of return? cash […]

(Compound interest with non-annual periods) You just received a bonus of $4,000. a.Calculate the future value of $4 ,000, given that it will be held in the bank for 5 years and earn an annual interest rate of 4 percent . b.Recalculate part (a) using a compounding period that is (1) semiannual and (2) bimonthly. c.Recalculate parts (a) and (b) using an annual interest rate […]

Company z-prime’s earnings and dividends per share are expected to grow by 5% a year its stop after year 4. In year 5 and afterward, it will pay out all earnings as dividends. Assume next dividend in $ 10, the market capitalization rate is 8% and next year’s EPS is $ 15. What is Z-prime’s stock price?3 GraduateWriterHelp.com is an online academic writing platform that […]

There are two stocks in the market: Stock A and Stock B. The price of Stock A today is $73. The price of Stock A next year will be $62 if the economy is in a recession, $85 if the economy is normal, and $95 if the economy is expanding. The probabilities of recession, normal times, and expansion are .18, .62, and .20, respectively. Stock […]

Financial Markets . An investment banker agrees to a best efforts offering of 6 million shares of ABC stock. The offer price is set at $17.2 per share. If the stock is actually sold to the public at $16.06 and the banker charges a 0.42 dollar commission per share sold, what is the amount of funds ABC receives? (Ignore any other fees or expenses.) Answer […]

FAB Corporation will need 200,000 Canadian dollars (C$) in 90 days to cover a payable position. Currently, a 90-day call option with an exercise price of $.75 and a premium of $.01 is available. Also, a 90-day put option with an exercise price of $.73 and a premium of $.01 is available. FAB plans to purchase options to hedge its payable position. Assuming that the […]

40. Which of the following would be included among theinvestment numbers of a capital budget? a. purchase price of the asset b. trade in value of and asset being replaced c. investment tax credit from acquisition d. all of the above 41. Projected sales growth assumes a. adequate asset base b. decrease in property, plant, and equipment c. drecrease in accoubt receivable d. decrease in […]