Zakiya Abdul Samad



Chapter 6: Bond ValuationText Book Exercises: Find the price of a semiannual coupon bond given that the coupon rate = 11%, the face value = $1000, the required return = 12%, and there are 16 years remaining until maturity.Find the price of a semiannual coupon bond given that the coupon rate = 9%, the face value = $1000, the required return = 13%, and there are 22 years remaining until maturity.Find the yield to maturity on a semiannual coupon bond given that the bond price = $1210, the coupon rate = 9%, the face value = $1000, and there are 10 years remaining until maturity.Find the yield to maturity on a semiannual coupon bond given that the bond price = $1150, the coupon rate = 11%, the face value = $1000, and there are 29 years remaining until maturity.Find the price of a semiannual coupon bond given that the coupon rate = 14%, the face value = $1000, the required return = 11%, and there are 3 years remaining until maturityWhat price will be paid for a U.S. Treasury bond with an ask price of 135:20??What price was reported in the financial press for a bond that was sold to an investor for $1,045.63??How much should you pay for a $1,000 bond with 10% coupon, annual payments, and 5 years to maturity if the interest rate is 12%??How much would an investor expect to pay for a $1,000 par value bond with a 9% annual coupon that matures in 5 years if the interest rate is 7%??What is the current yield of a bond with a 6% coupon, 4 years until maturity, and a price of $750??What is the coupon rate for a bond with 3 years until maturity, a price of $1,053.46, and a yield to maturity of 6%??What is the yield to maturity for a bond paying $100 annually that has 6 years until maturity and sells for $1,000??What is the yield to maturity of a bond with the following characteristics? Coupon rate is 8% with semiannual payments, current price is $960, 3 years until maturity.?What is the amount of the annual coupon payment for a bond that has 6 years until maturity, sells for $1,050, and has a yield to maturity of 9.37%??Two years ago bonds were issued with 10 years until maturity, selling at par, and a 7% coupon. If interest rates for that grade of bond are currently 8.25%, what will be the market price of these bonds??What is the total return to an investor who buys a bond for $1,100 when the bond has a 9% coupon rate and 5 years remaining until maturity, then sells the bond after 1 year for $1,085??How much should you be prepared to pay for a 10-year bond with a 6% coupon and a yield to maturity of 7.5%??An investor buys a 5-year, 9% coupon bond for $975, holds it for 1 year, and then sells the bond for $985. What was the investor's rate of return??An investor buys a 10-year, 7% coupon bond for $1,050, holds it for 1 year, and then sells it for $1,040. What was the investor's rate of return??If a bond offers an investor 11% in nominal return during a year in which the rate of inflation was 4%, then the investor's real return was:?Chapter 8: Capital BudgetingText book exercises: Find the NPV of the project with the following cash flows if the cost of capital is 7%.012345$-1200$200$200$500$200$200Find the Payback Period for the project with the following cash flows.012345678$-1200$500$0$300$300$200$200$200$400Find the Payback Period for the project with the following cash flows.012345$-1200$100$300$200$500$300Find the IRR of the project with the following cash flows.0123456$-1200$200$100$200$100$400$500Find the NPV of the project with the following cash flows if the cost of capital is 5%.012345678$-1300$0$0$500$500$200$200$100$300What is the NPV of a project that costs $100,000 and returns $50,000 annually for 3 years if the opportunity cost of capital is 14%??What is the maximum that should be invested in a project at time zero if the inflows are estimated at $50,000 annually for 3 years, and the cost of capital is 9%??What is the approximate maximum amount that a firm should consider paying for a project that will return $15,000 annually for 5 years if the opportunity cost is 10%??What is the NPV for the following project cash flows at a discount rate of 15%? C0 = ($1,000), C1 = $700, C2 = $700.?What is the minimum cash flow that could be received at the end of year 3 to make the following project "acceptable"? Initial cost = $100,000; cash flows at end of years 1 and 2 = $35,000; opportunity cost of capital = 10%.?A polisher costs $10,000 and will cost $20,000 a year to operate and maintain. If the discount rate is 10% and the polisher will last for 5 years, what is the equivalent annual cost of the tool??What is the approximate IRR for a project that costs $100,000 and provides cash inflows of $30,000 for 6 years??What is the IRR of a project that costs $100,000 and provides cash inflows of $17,000 annually for 6 years??If a project's IRR is 13% and the project provides annual cash flows of $15,000 for 4 years, how much did the project cost??What is the minimum number of years that an investment costing $500,000 must return $65,000 per year at a discount rate of 13% in order to be an acceptable investment??What is the equivalent annual cost for a project that requires a $40,000 investment at time-period zero, and a $10,000 annual expense during each of the next 4 years, if the opportunity cost of capital is 10%??Because of its age, your car costs $4,000 annually in maintenance expense. You could replace it with a newer vehicle costing $8,000. Both vehicles would be expected to last 4 more years. If your opportunity cost is 8%, by how much must maintenance expense decrease on the newer vehicle to justify its purchase??You can continue to use your less efficient machine at a cost of $8,000 annually for the next 5 years. Alternatively, you can purchase a more efficient machine for $12,000 plus $5,000 annual maintenance. At a cost of capital of 15%, you should Keep the old machine and save $580 in equivalent annual costs?Calculate the NPV for a project costing $200,000 and providing $20,000 annually for 40 years. The discount rate is 8%. By how much would the NPV change if the inflows were reduced to 30 years?? ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download