Questions from General Finance

Q: Given the following probabilities and returns for Mik’s Corporation, find the

Given the following probabilities and returns for Mik’s Corporation, find the standard deviation. PROBABILITY …………………. RETURNS 0.40 …………………………………………. 7% 0.25 …………………………………………. 4% 0.15 ……………………………………...

Q: From the price data that follow, compute the holding period returns

From the price data that follow, compute the holding period returns for periods 2 through 4. PERIOD ……………………. STOCK PRICE 1 ………………………………………………. $10 2 …………………………………………………. 13 3 …………………………………………………. 11...

Q: Bellingham bonds have an annual coupon rate of 8 percent and a

Bellingham bonds have an annual coupon rate of 8 percent and a par value of $1,000 and will mature in 20 years. If you require a return of 7 percent, what price would you be willing to pay for the bon...

Q: You own a bond that pays $70 in annual interest,

You own a bond that pays $70 in annual interest, with a $1,000 par value. It matures in 15 years. Your required rate of return is 7 percent. a. Calculate the value of the bond. b. How does the value c...

Q: Kyser Public Utilities issued a bond with a $1,000

Kyser Public Utilities issued a bond with a $1,000 par value that pays $30 in annual interest. It matures in 20 years. Your required rate of return is 4 percent. a. Calculate the value of the bond. b....

Q: You are examining three bonds with a par value of $1

You are examining three bonds with a par value of $1,000 (you receive $1,000 at maturity) and are concerned with what would happen to their market value if interest rates (or the market discount rate)...

Q: Bank of America has bonds that pay a 6.5 percent

Bank of America has bonds that pay a 6.5 percent coupon interest rate and mature in 5 years. If an investor has a 4.3 percent required rate of return, what should she be willing to pay for the bond? W...

Q: The common stockholders receive two types of return from their investment.

The common stockholders receive two types of return from their investment. What are they?

Q: Xerox issued bonds that pay $67.50 in interest each

Xerox issued bonds that pay $67.50 in interest each year and will mature in 5 years. You are thinking about purchasing the bonds. You have decided that you would need to receive a 5 percent return on...

Q: Sakara Co. bonds are selling in the market for $1

Sakara Co. bonds are selling in the market for $1,045. These 15-year bonds pay 7 percent interest annually on a $1,000 par value. If they are purchased at the market price, what is the expected rate o...