For time value of money problems, show your inputs, and tell me what you use for the calculations! No work and its wrong = 0 points!
A credit card is offered with monthly payments and a 21.99% APR. What is the loan's effective annual rate (EAR)? EAR:
Calculate the price of a $1,000 bond, offering a 10% coupon payment with 20 years left to maturity and a market interest rate of 12%. (Assume interest payments are semi annual.) Is this a discount or premium bond? Price: Type:
On July 25, 2014, the Dow Jones Industrial Average opened $17,083.80 and closed at $16,960.57. What was the effective annual rate return (in percent) of the stock market that day? Daily Return: % EAR: %
Financial analysts forecast GDY Inc.’s growth for the future to be 3%. GDY's recent annual dividend was $4.00. What is the value of GDY stock when the required return is 11%? Stock Value: $
URN Inc. recently paid a $5.00 annual dividend. The dividend is expected to grow at a 4% rate. At a current stock price of $52, what is the return shareholders are expecting? Expected Return %