TASK 1: Question about bonds purchase or not?
Bakersfield Co. 8.5s16 bonds pay interest semiannually, and are quoted in the WSJ ad 88 1/2. If your rate of return is 10%, would you buy these bonds in 2001 and what is the total amt
TASK 2: Stocks and bonds questions?
Butler corp 6s06 bonds pay interest smiannually and will mature Oct 8, 2006. If your required rate of return is 9%. per annum, how much should you pay for a $1,000 bond on April 9, 2001
TASK 3: Coupon bonds and interest question?
X Company 7% coupon bonds pay interest semiannually. When u bought one it had 11 yrs to maturity and the appropriate discount rate was 9%. After 1 yr th discount rate on such bonds in 8% because of the improved financial health of the Company. If u sell the bond today, what would your capital gain be?
TASK 4: Bond paying interest semiannually?
A bod pays interest semiannually and will mature after 6 yr. The required rate of return by the bondholders is 14% per annum, and the face amt of the bond is $1000. If th market price of the bond is $920.60, find its coupon rate.
TASK 5: Stocks that pay dividends?
X Corp stock pays $6 annual dividend and sells at $62 per share. The company expects to show continued growth at the rate of 4% per annum. Find the required rate of return by the stockholders.