Showing 71 to 80 of 5922 Questions
  • A bidder paid $1,250 for a target. The target’s market asset is $2,000 and market liability is $1,050. What is the goodwill created during the acquisition?

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  • A biotechnology firm is growing at a compound rate of more than 21 percent a year. (Its ROE is over 30 percent, and it retains about 70 percent of its earnings.) The stock of this company is priced at about 65 times next year's earnings. Discuss whether you consider this a growth company and/or a growth stock.

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    29
  • A bond for the Chelle Corporation has the following characteristics:Maturity-12 years Coupon-10% Yield to maturity-9.50% Macaulay duration-5.7 years Convexity-48 Noncallablea. Calculate the approximate price change for this bond using only its duration, assuming its yield to maturity increased by 150 basis points. Discuss (without calcula

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  • A bond has a current yield of 9% and a yield to maturity of 10%. Is the bond selling above or below par value? Explain.

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    108
  • A bond has the following features: • Coupon rate of interest: 5 percent • Principal: $1,000 • Term to maturity: 10 years a. What will the holder receive when the bond matures? b. If the current rate of interest on comparable debt is 8 percent, what should be the price of this bond? Would you expect the firm to call this bond? Why?

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    5
  • A bond speculator currently has positions in two separate corporate bond portfolios: a long holding in Portfolio 1 and a short holding in Portfolio 2. All the bonds have the same credit quality. Other relevant information on these positions includes:Treasury bond futures (based on $100,000 face value of 20-year T-bonds having an 8 percen

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    12
  • A bond with 15 years to maturity has a semiannual interest payment of $40. If the bond sells for its par value, what are the bond's current yield and yield to maturity?

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    5
  • A bond with a coupon rate of 7% makes semiannual coupon payments on January 15 and July 15 of each year. The Wall Street Journal reports the asked price for the bond on January 30 at 100:02. What is the invoice price of the bond? The coupon period has 182 days.

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    426
  • A bond with a par value of $1000 has a coupon rate of 7 percent and matures in 15 years. Using a spreadsheet program, graph its price versus different yields to maturity, ranging from 1 percent to 20 percent. Is the relationship between price and yield linear? Why? Semi-annual coupons = $35; number of periods = 15 x 2 = 30 A spreads

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    6
  • A bond with an annual coupon rate of 4.8% sells for $970. What is the bond’s current yield?

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    843
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