Which one of the following statements concerning sinking funds is correct?

Moneypenny Inc. has bonds outstanding with a $1,000 face value and 10 years left until maturity. James purchased these bonds 2 years ago for $885. The bonds pay semi-annual interest at an annual coupon rate of 5.4%. Due to an emergency cash need, James now has to sell the bonds and can do so for $925. What is his annualized realized yield on this investment? Hint: Enter your answer as a percentage rounded to two decimal places.

Which asset classes are commonly split into sub-classes by geography, growth, and size characteristics?

Monsters Inc. has an outstanding bond with a face value of $1,000 and 5 years remaining until maturity. The bond pays a 4.0% annual coupon, with semi-annual payments. The current market yield is 6.0% per year. What should be the current market price of the bond? Enter your answer as a positive number rounded to two decimal places.

Moneypenny Inc. has bonds outstanding with a $1,000 face value and 10 years left until maturity. James purchased these bonds 2 years ago for $885. The bonds pay semi-annual interest at an annual coupon rate of 5.4%. Due to an emergency cash need, James now has to sell the bonds and can do so for $875. What is his annualized realized yield on this investment? Hint: Enter your answer as a percentage rounded to two decimal places.

Read “Talk Is the Exercise Ground” by Natalie Goldberg (above) a few times.  The first time, just get the idea of what she is saying.  In the second or third reading, notice which ideas and lines jump out to you as important and meaningful.  Think about it, and below write the sentence or group of sentences that you think is the most significant.  Try to limit yourself to a few sentences, the energy of the idea.  Write those sentences below and put quotation marks around them since they are her words and ideas, not yours. You don’t need to explain what this quote means.  Just write it by itself.  Write the quote from the reading in the box below.

Monsters Inc. has an outstanding bond with a face value of $1,000 and 5 years remaining until maturity. The bond pays a 6.50% annual coupon, with semi-annual payments. The current market yield is 6.0% per year. What should be the current market price of the bond? Enter your answer as a positive number rounded to two decimal places.

Monsters Inc. is planning a major campus expansion to meet growing demand and intends to finance it by issuing 1,000-year bonds. Based on market research and advice from their bankers, they have identified the following risk premiums: Default risk premium: 4.05% Maturity premium: 3.5% Liquidity premium: 1.29% Nominal risk-free rate (base rate): 5.1% What interest rate (yield) should Monsters Inc. offer on these bonds to attract investors and raise the necessary capital? Enter your answer with two decimals.

Monsters Inc. has an outstanding bond with a face value of $1,000 and 5 years remaining until maturity. The bond pays a 8.5% annual coupon, with semi-annual payments. The current market yield is 6.0% per year. What should be the current market price of the bond? Enter your answer as a positive number rounded to two decimal places.

Silver Airlines Ltd. has just paid an annual dividend of $1.40 per share. Dividends are expected to grow at a constant rate of 3% per year. If investors require a 16% rate of return, what is the fair value of the company’s stock? Enter your answer as a dollar amount rounded to two decimal places.