A bond with a current yield of 7.20 percent is quoted at 103.261. What is the coupon rate of the bond:?
An investment had a nominal return of 11.4 percent last year…
An investment had a nominal return of 11.4 percent last year. The inflation rate was 3.8 percent. What was the real return on the investment?
Your insurance agent is trying to sell you an annuity that c…
Your insurance agent is trying to sell you an annuity that costs $50,000 today. By buying this annuity, your agent promises that you will receive payments of $250 a month for the next 20 years. What is the rate of return on this investment?
Rousey, Incorporated, had a cash flow to creditors of $17,05…
Rousey, Incorporated, had a cash flow to creditors of $17,055 and a cash flow to stockholders of $7,685 over the past year. The company also had net fixed assets of $49,755 at the beginning of the year and $57,190 at the end of the year. Additionally, the company had a depreciation expense of $12,300 and an operating cash flow of $51,270. What was the change in net working capital during the year?
A bond has a par value of $1,000, a current yield of 7.17 pe…
A bond has a par value of $1,000, a current yield of 7.17 percent, and semiannual coupon payments. The bond is quoted at 104.68. What is the amount of each coupon payment?
You just won the magazine sweepstakes and opted to take unen…
You just won the magazine sweepstakes and opted to take unending payments. The first payment will be $50,000 and will be paid one year from today. Every year thereafter, the payments will increase by 2.5 percent annually. What is the present value of your prize at a discount rate of 7.9 percent?
Elena receives $450 on the first of each month. Harley recei…
Elena receives $450 on the first of each month. Harley receives $450 on the last day of each month. Both Elena and Harley will receive four years of payments. If the discount rate is 9.5 percent, what is the difference in the present value of these two sets of payments?
A bond that pays interest semiannually has a price of $981.7…
A bond that pays interest semiannually has a price of $981.73 and a semiannual coupon payment of $27.75. If the par value is $1,000, what is the current yield?
Harpeth Valley Water District has a bond outstanding with a…
Harpeth Valley Water District has a bond outstanding with a coupon rate of 4.03 percent and semiannual payments. The bond matures in 22 years, with a yield to maturity of 3.73 percent, and a par value of $5,000. What is the market price of the bond?
You just paid $480,000 for an annuity that will pay you and…
You just paid $480,000 for an annuity that will pay you and your heirs $15,000 a year forever. What rate of return are you earning on this policy?