Questions from Personal Finance

Q: Five years ago, you purchased a $1,000 par

Five years ago, you purchased a $1,000 par value corporate bond with a coupon interest rate of 3.6 percent. Today comparable bonds are paying 4.2 percent. (LO11.5) a. What is the approximate dollar pr...

Q: In 2009, you purchased a $1,000 corporate bond

In 2009, you purchased a $1,000 corporate bond with a coupon interest rate of 4%. Today, comparable bonds are paying 3.30 percent. (LO11.5) a. What is the approximate dollar price for which you coul...

Q: Determine the current yield on a corporate bond investment that has a face

Determine the current yield on a corporate bond investment that has a face value of $1,000, pays 4.45 percent, and has a current price of $920. (LO11.6)

Q: Assume you own a corporate bond that has a face value of

Assume you own a corporate bond that has a face value of $1,000 and pays 4.60 percent. What is the current yield if the bond is currently selling for $1,080? (LO11.6)

Q: For four years, Marty Campbell invested $4,000 each

For four years, Marty Campbell invested $4,000 each year in Harley-Davidson. The stock was selling for $55 in 2017, $47 in 2018, $36 in 2019, and $33 in 2020. (LO12.5) a. What is Marty’s total inves...

Q: Bob Orleans invested $3,000 and borrowed $3,

Bob Orleans invested $3,000 and borrowed $3,000 to purchase shares in Verizon Communications. At the time of his investment, Verizon was selling for $60 a share. (LO12.5) a. If Bob paid a commission...

Q: Jane and Bill Collins have total take-home pay of $

Jane and Bill Collins have total take-home pay of $5,400 a month. Their monthly expenses total $4,250. Calculate the minimum amount this couple needs to establish an emergency fund. (LO11.1)

Q: Jamie Lee and Ross need to evaluate their emergency fund of $

Jamie Lee and Ross need to evaluate their emergency fund of $21,000. Will their present emergency fund be sufficient to cover them should one of them lose their job?

Q: Use the information in the Figure It Out! box earlier in

Use the information in the Figure It Out! box earlier in this chapter to complete the following table.

Q: Assume you are in the 24 percent tax bracket and purchase a

Assume you are in the 24 percent tax bracket and purchase a 2.90 percent municipal bond. Use the formula presented in this chapter to calculate the taxable equivalent yield for this investment. (LO11...