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Ridgefield Enterprises has total assets of 300 million dollar. The company currently has no debt in its capital structure. The company basic earning power is 15%. The company is contemplating a recapi
Determine the price would you pay in dollars to buy this Treasure bill?
Silver Company received proceeds of $94,250 on 10-year, eight percent bonds issued on January 1, 2007. The bonds had a face value of $100,000, pay interest semi-annually on June 30 and December 31, an
Brown Enterprises' bonds currently sell for $1,025. They have a nine year maturity, an annual coupon of $80, and a par value of 1,000 dollar. Calculate their current yield and yield to maturity.
If 10-year T-bonds have a yield of 5.2%, 10-year corporate bonds yield 7.5%, the maturity risk premium on all 10-year bonds is 1.1 percent, and corporate bonds have a 0.2% liquidity premium versus a z
A portfolio exists containing stocks A, B, and C held in proportions 50%, 30%, and 20 percent respectively. The expected returns on the three stocks are given by 10%, 15%, & 16 percent respectivel
At 8% compounded annually, how long will it take 750 dollar to double?
Over the past 75 years, we have observed that investments with the highest average annual returns also tend to have the highest standard deviations of their yearly returns.
Reading Railroad's common stock is currently priced at $30, and its 8 percent convertible debentures (issued at par or $1,000) are priced at $850. Each debenture can be converted into 25 shares
When output is 50, fixed costs are $1,000 & variable costs are $2,000. Calculate the average total costs?
A frugal shopper checks the prices of the same name-brand microwave oven at six different department stores and discovers the following sale prices Determine the median price of the values given
Heymann company bonds have four years left to maturity. Interest is paid annually, and the bonds have a $1000 par value and a coupon rate of 9 percent.
A firm's bonds have maturity of ten years with a $1000 face value, an 8 percent semiannual coupon, are callable in 5 years at $1050 and, currently sell at a price of 1100 dollar.
Kaufman Enterprises has bonds outstanding with a $1000 face value and ten years left until maturity. They have an 11% yearly coupon payment and their current price is $1175.
An 8% semiannual coupon bond matures in five years. The bond has a face value of $1000 and current yields of 8021%. Calculate the bond's price and YTM?
Compute the effective duration of a bond to a 100 basis point change in interest rates with a 6-1/4 coupon, 10-years remaining to maturity, & an asking quote of 110.7811 [decimal, not 32nds].
Nungesser Corporation's outstanding bonds have a $1,000 par value, an 8% semiannual coupon, 9 years to maturity, and a 10 percent YTM. Calculate the bond's price? Give your answer to the nearest hundr
Suppose the following: The real risk-free rate, r*, is expected to remain constant at 3%. Inflation is expected to be 3% next year and then to be constant at 2% a year thereafter.
Assume the interest rate on a 1-year T-bond is 5.0% and that on a 2-year T-bond is 6.0%. Suppose that the pure expectations theory is NOT valid, and the MRP is zero for a one year T-bond but 0.4% for
Determine the coupon rate should be set on the bond with warrants if the total package is to sell for $1,000?
Central City received 80,500,000 dollar from the bond issue. Use a spreadsheet program to find the NIC and TIC interest rates for the bond issue. Calculate the values for NIC and TIC be if the interes
New University plans to issue a 100,000 dollar bond. The money is to buy computer projection units for classrooms. The bond matures in ten years, & it makes semiannual interest payments.
Suppose that McDonald's and Burger King have similar 1,000 dollar par value bond issues outstanding. If the nominal required rate of return, kd is 12%, semiannual basis, for both bonds, determin
A six year bond which pays 8% interest semiannually sells at par [1,000 dollar]. Another six year bond of equal risk pays 8% interest yearly. Calculate the price of the bond which pays annual int
Fish & Chips Inc. has two bond issues outstanding, and both sell for 701.22 dollar. The first issue has a yearly coupon rate of 8% and 20 years to maturity.