Bond valuation: Suppose a bond with a face value of $1000 is discounted to the present at 10%, what is the present value of the bond in 30 years if the market rate is 5 %?
Suppose the bond had been a premium bond, with a present value at $1200, what is the yield to maturity, if the effective annual rate is 3%?
Suppose a stock that purchased at $54 a share has a value of $60 per share the following year, what is the holding period return if the stock pays a dividend of $3?
Referring to question 3, what is the current/present value of the stock if the risk adjusted rate is 12%?
Suppose there is a 25% chance that the return on a stock will be 3.5%, 35 % chance that the rerun will be 2.5 %, and 40% chance that the return will be 2%, what will be the expected rate of return? What is the variance.