Questions from Personal Finance

Q: Pamela bought a bond for $926 with a face value of

Pamela bought a bond for $926 with a face value of $1,000 and an annual coupon of $50. If the bond matures in 18 years, what is her yield to maturity?

Q: Y Co. has a projected dividend of $2.00

Y Co. has a projected dividend of $2.00, has a required rate of return of 8 percent, and is expected to grow 6 percent a year. Solve for its anticipated stock price.

Q: If the investment rate of return is 7 percent after tax and

If the investment rate of return is 7 percent after tax and the inflation rate is 4 percent, find the blended rate of return.

Q: Eleanor needs $40,000 a year to live on in

Eleanor needs $40,000 a year to live on in retirement net of the income she will receive. She will be retiring in 22 years and is funding for a 25-year retirement. The inflation rate is expected to be...

Q: Brad and Barbara made an appointment to see me concerning their own

Brad and Barbara made an appointment to see me concerning their own financial situation. They were a newly married couple in their early 20s. Barbara came from a family whose parents had children earl...

Q: Frank, age 28, wants to calculate his resources in real

Frank, age 28, wants to calculate his resources in real (inflation-adjusted) terms. Calculate the amount of resources made available by age 65 retirement if $18,000 a year is saved. Assume that outflo...

Q: The Smiths had $110,000 in savings at age 51

The Smiths had $110,000 in savings at age 51. They had a desired retirement age of 65. They want to fund through age 92. Assume a 4 percent inflation rate and a 5 percent after tax rate for investment...

Q: Magdalena, age 35, has $72,000 accumulated in

Magdalena, age 35, has $72,000 accumulated in savings. She projects she will save $23,000 a year until her retirement at age 67. Her current cost of living is $100,000. In retirement, she will receive...

Q: April made $50,000 in year 1 and $60

April made $50,000 in year 1 and $60,000 in year 2. She had the following yearly outflows: Calculate April’s operating cash flow and net cash flow for each year.

Q: Using the following statistics, calculate Jackson’s current and emergency fund ratios

Using the following statistics, calculate Jackson’s current and emergency fund ratios. Current assets ……………………………………..$2,000 Current liabilities …………………………………….1,000 Liquid assets ………………………………………….8,...