Please work step by step.,Chapter 4, problems 4-2, 4-6, 4-9 (a,b,c), 4-10 (a,b,c,d) ,4-2. What is the present value of a security that will pay $5,000 n 20 years if securities of equal risk pay 7% annually?,4-6. What is the future value of a 7%, 5 year ordinary annuity that pays $300 each year? If this were an annuity due, what would its future value be?,4-9. Find the following values using the equations, and then work the problems using a financial calculator to check your answers. Disregard rounding differences., A. An initial $500 compounded for 1 year at 6%, B. An initial $500 compounded for 2 years at 6%, C. The present value of $500 due in 1 year at a discount rate of 6%,4-10. Use both the TVM equations and a financial calculator to find the following values. , A. An initial $500 compounded for 10 years at 6%, B. An initial $500 compounded for 10 years at 12%, C. The present value of $500 due in 10 years at a 6% discount rate, D. The present value of $500 due in 10 years at a 12% discount rate,Chapter 5, problems 5-1, 5-6, 5-9 (a,b).,5-1. Jackson Corporation’s bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 8%. The bonds have a yield to maturity of 9%. What is the current market price of these bonds?,5-6. The real risk-free rate is 3%, and inflation is expected to be 3% for the next 2 years. A 2 year Treasury security yields 6.3%. What is the maturity rick premium for the 2 year security?,5-9. The Garraty Company has two bond issues outstanding. Both bonds pay $100 annual interest plus $1,000 at maturity. Bond L has a maturity of 15 years, and Bond S has a matury of 1 year., A. What will be the value of each of these bonds when the going rate of interest is (1) 5%, (2) 8%, and (3) 12%? Assume that there is only one more interest payment to be made on Bond S., B. Why does the longer-term (15 year) bond fluctuate more when interest rates change than does the shorter-term bond (1 year)?,Chapter 6, problems 6-2, 6-3, 6-6 (a,b),6-2. Assume that the risk free rate is 6% and that the expected return on the market is 13%. What is the required rate of return on a stock that has a beta of 0.7?,6-3. Assume that the risk free rate is 5% and that the market risk premium if 6%. What is the required return on the market, on a stock with a beta of 1.0, and on a stock with a beta of 1.2?,6-6. Suppose rRF=5%, rM= 10%, and rA= 12%., A. Calculate Stock A’s beta., B. If Stock A’s beta were 2.0, then what would A’s new required rate of return?,
Regent Papers is a library of common essays on high school, college, undergraduate and postgraduate topics. We have collected top papers from various institution, students and professors. The papers are based on common essay topics in all subjects.
2922 Oak Grove Drive La Cañada Flintridge, CA 91521.