Andrews wants to retire the following bond early: Series 10.4S2033 Face$6,000,000 Yield - 11.2% Close-$93.20 Assuming no brokerage fees, calculate the amount of cash needed to retire the bond. $5,592,091 $407,909 $6,000,000
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- Calculate the present value of an asset that pays $225 at the end of each year for 6 years and has a face value payment of $500Find the net present worth of the following cash flow series at an interest rateof 8%. End of Period Cash flow 0 - $1,000 1 - $2,000 2 $3,000 3 $4,500 4 $1,500A firm has 60,000 shares whose current price is $62.57. These shareholders expect a return of 14%. The firm has a 3-year loan of $1,900,000 at 8.3%. it has issued 22,000 bonds with a face of $1,000,20 years left to maturity, semi-annual compounding , a coupon interest rate of 8% and a current price of $925. Using the above figures for its debt and equity, what is the firm's Cost of Capital after taxes with a tax rate of 34% ?
- Lourdes Corporation's 12% coupon rate, semiannual payment, $1,000 par value bonds, which mature in 30 years, are callable 3 years from today at $1,050. They sell at a price of $1,187.45, and the yield curve is flat. Assume that interest rates are expected to remain at their current level. What is the best estimate of these bonds' remaining life? Round your answer to the nearest whole number. years If Lourdes plans to raise additional capital and wants to use debt financing, what coupon rate would it have to set in order to issue new bonds at par? Since interest rates have risen since the bond was first issued, the coupon rate should be set at a rate above the current coupon rate. Since the bonds are selling at a premium, the coupon rate should be set at the going rate, which is the YTC. Since the bonds are selling at a premium, the coupon rate should be set at the going rate, which is the YTM. Since Lourdes wishes to issue new bonds at par value, the coupon rate set should be the…You are the manager of the Mighty Fine mutual fund. The following table reflects the activity of the fund during the last quarter. The fund started the quarter on January 1 with a balance of $100 million. Mighty Fine Mutual Pund Monthly Data (measured at end of month) February -4.3 6.20 March January 5.5 Net inflows ($ million) HPR () -4.30 1.80 Required: a. Calculate the quarterly arithmetic average return on the fund. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Arithmetic average 1.23 % b. Calculate the quarterly geometric (time-weighted) average return on the fund. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Geometric average 1.14 % c. Calculate the quarterly dollar-weighted average return on the fund. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Dollar-weighted average return1. What is is the taxable equivalent yield (TEY) on the following muni bonds, given a 30% tax rate? Price Semi-annual coupon rate 104.25 Price 6% Annual coupon rate 100 Face value Face value Maturity 10 Maturity TEY TEY 100 Price 5% Semi-annual coupon rate 100 Face value 7 Maturity TEY 900 Price 4% Zero 1000 Face 3 coupon value Maturity TEY 896.65 1000 5
- From following information calculate terminal Reserve at the end of the 3rd year and cost of insurance pet head ;assumed rate of interest 5 % and net annual premium of 10 years endowment ordinary policy of tk 1000 issued at the age of 40 years is tk 10.Number of death per thousand at the end of 1st year,2nd year and 3rd year is 2,3 and 4 respectively.3) Find the value of D that results in a negative Equivalent Uniform Annual Worth (EUAW) of $0.00. Assume an interest rate of 10% 1.5D 1 2 3. 4 5 6. $500 A. $57.00 B. $68.00 C. $79.00 D. $86.00What is the current value of a security that pays $500 per year for 7 years if similar investments now earn 12%
- Assume that an investor is expecting to receive P606,060.00 at the end of 6 years. Compute for the total value of proceeds if it were to be received now under simple and compound discount. The current interest rate is at 16%.8- Your credit score is in the range of 720-739 and you want to buy a house in Davis (CA). You have 20% down payment to put on a house that has a market value of $450,000. a) Use www.bankrate.com website to identify the bank with the most convenient APR for your 30- year fixed mortgage and accordingly calculate your annual payment. Ignore external and additional costs in your calculation that may vary from one bank to another b) After 20 years of annual payment, how much you should pay in lump sum to your bank to end up all your debts. Ignore penalties or any other additional cost c) According to your finance, your maximum annual payment for your mortgage cannot exceed $24,000. Under this condition, how much should be your minimum down payment for your mortgage?Using the following spot rates for the following 4 strips of a 2-year semi-annual 3% coupon T-Note, what would you expect the YTM of this bond to be? Spot Rate 6 month 4.19% Term 12 month 8.5I 18 month 9.506 24 month 9.54 OR046 R.32% • 9.52% 14.63%