1. This morning you purchased a rare coin for 12,500. The coin has been appreciating in value at an annual rate of 9.6 percent and is expected to continue doing so. How long until the coin is worth 20,000?
2. Suppose a bond sold by Internet Corp. has a face value on $100, a coupon payment of $8 per year, a maturity of 2 years, and a market price of $ 81.67, what is the YTM?
3. The Holmes Company's currently outstanding bonds have an 8% coupon and a 10% yield to maturity. Holmes believes it could issue new bonds at par that would improve a similar yield to maturity. If it's marginal tax rate is,40% what is Holmes after-tax cost of debt?