You put 45% of your money in a stock that has an expected return of 14%. You put the rest of you money in a bond that has an expected return of 6%. What is the expected return of your portfolio?

Your uncle has $375,000 and wants to retire. He expects to live for another 25 years, and he also expects to earn 7.5% on his invested funds. How much could he withdraw at the beginning of each of the next 25 years and end up with zero in the account?

What is the present value of a security that will pay $16,000 in 30 years if securities of equal risk pay 4 percent annually?

Schallheim Corporation’s outstanding bonds have a $1,000 par value, a 13 percent semiannual coupon, 11 years to maturity, and an 11.5 percent yield to maturity (YTM).  What is the bond’s price?

Kiev Corporation’s outstanding bonds have a $1,000 par value, a 12 percent semiannual coupon, 19 years to maturity, and an 8.5 percent yield to maturity (YTM).  What is the bond’s price?

Brooks Books’ bonds have 6 years remaining to maturity.  Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 9 percent; and the yield to maturity is 6.5 percent.  What is the bond’s current market price?

An investment will pay $600 at the end of each of the next 4 years, $500 at the end of Year 5, and $600 at the end of Year 6.  What is its present value if other investments of equal risk earn 8 percent annually?

Quigley Inc.’s bonds currently sell for $1,080 and have a par value of $1,000. They pay a $100 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,125. What is their yield to maturity (YTM)?

A firm’s bonds have a maturity of 28 years with a $1,000 face value, a 10 percent semiannual coupon, are callable in 6 years at $1,100, and currently sell at a price of $1,173.  What is their yield to call (YTC)?

Steve plans to retire in 25 years.  He currently has saved up $100,000, and he believes he will need $1,000,000 at retirement.  What annual interest rate must Steve earn to reach his goal, assuming he does not save any additional funds between now and retirement?