Questions from Personal Finance

Q: Find the current yield of a 5.65 percent, 8

Find the current yield of a 5.65 percent, 8-year bond that’s currently priced in the market at $853.75. Now, use a financial calculator to find the yield to maturity on this bond (use annual compoundi...

Q: A 25-year, zero coupon bond was recently quoted at

A 25-year, zero coupon bond was recently quoted at 6.500. Find the current yield and yield to maturity of this issue, given the bond has a par value of $1,000. (Assume annual compounding for the yield...

Q: Brooke Stauffer recently graduated from college and moved to Atlanta to take

Brooke Stauffer recently graduated from college and moved to Atlanta to take a job as a market research analyst. She was pleased to be financially independent and was sure that, with her $45,000 salar...

Q: Define and differentiate between gross income and AGI. Name several types

Define and differentiate between gross income and AGI. Name several types of tax-exempt income. What is passive income?

Q: Assume that an investor pays $850 for a long-term

Assume that an investor pays $850 for a long-term bond that carries a 7.5 percent coupon. During the next 12 months, interest rates drop sharply, and the investor sells the bond at a price of $962.50....

Q: Find the conversion value of a convertible bond that carries a conversion

Find the conversion value of a convertible bond that carries a conversion ratio of 24, given that the market price of the underlying common stock is $55 a share. Would there be any conversion premium...

Q: Calculate current yield, conversion ratio, conversion price, and yield

Calculate current yield, conversion ratio, conversion price, and yield to maturity. A 6 percent convertible bond (maturing in 20 years) is convertible into 25 shares of the company’s common stock. The...

Q: You have decided to sell a 5 percent semiannual coupon bond two

You have decided to sell a 5 percent semiannual coupon bond two months after the last coupon payment. The bond is currently selling for $951.25. Answer the following questions about the bond: a. What...

Q: Selected financial information about Backpacking Resources, Inc., is as follows

Selected financial information about Backpacking Resources, Inc., is as follows: Total assets …………………………………………………….…..…..$20,000,000 Total liabilities …………………………………………………….……..$8,000,000 Total prefer...

Q: Assume that you’ve just inherited $500,000 and have decided

Assume that you’ve just inherited $500,000 and have decided to invest a big chunk of it ($350,000, to be exact) in common stocks. Your objective is to build up as much capital as you can over the next...