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What usually happens when a company passes a dividend on a cumulative preference share?
What will the new market price on the issue be if the share's dividend yield holds at 9%?
The Granger Company has 500 000 $2 preference shares outstanding. It generates an EBIT of $40 million and has annual interest payments of $2 million.
You purchased 100 $2 preference shares one year and one day ago for $25 per share. You sold them today for $30 per share.
Use one of the dividend valuation models to price this share, assuming you have a 7.5% required rate of return.
A bond is currently selling in the market for $1170.68. It has a coupon of 12% and a 20-year maturity. Using annual compounding, calculate the promised yield.
Find the current yield, YTM and YTC on this issue, given that it is currently being priced in the market at $1200.
Assume that an investor is looking at two bonds. Bond A is a 20-year, 9% bond that is priced to yield 10.5%.
A zero-coupon bond that matures in 15 years is currently selling for $209 per $1000 par value. What is the promised yield on this bond?
Find the current yield and the promised yield of this issue, given that the bond has a par value of $1000.
What would the holding period return be if he were able to sell the bond (at $950) after only nine months?
Fnd the yield-to-maturity for each of the following bonds, A 9.5%, 20-year bond priced at $957.43, A 16%, 15-year bond priced at $1684.76
A bond has a Macaulay duration equal to 9.5 and a yield to maturity of 7.5%. What is the modified duration of this bond?
An investor wants to find the duration of a 25-year, 6% semi-annual-pay, non-callable bond that's currently priced in the market at $882.72, to yield 7%.
Find the Macaulay duration and the modified duration of a 20-year, 10% corporate bond priced to yield 8%.
If Mary's expectations are correct, what will the price of this bond be in two years?
One of the bond issues outstanding by H&W Ltd has an annual-pay coupon of 5.625% plus a par value of $1000 at maturity.
Find the investor's holding period return, given that this fund now has a net tangible asset value of $9.10.
Assume that it was purchased a year ago and that its income and capital gains distributions over the year have totalled $1.05 per share?
List the funds' holding period returns for the past year and their annual compound rates of return for the past three years.
Super Star's market-based holding period return for the year. Did the market premium/discount hurt or add value to the investor's return? Explain.
In light of Reverend Rob's long-term investment goals, do you think managed funds are an appropriate investment vehicle for him?
What factors in Tom's situation should be taken into consideration in the fund selection process?
Determine and justify an asset allocation to these four classes in light of your stated portfolio objectives and policies.
Use your annual HPR findings in part a to calculate the average HPR for each of the investment vehicles over the three-year period.