A bank-accepted bill (BAB) has a face value of $1,000,000 and will be mature in 165 days.
Question:
A bank-accepted bill (BAB) has a face value of $1,000,000 and will be mature in 165 days. If this BAB is currently trading at $957,000, how much is its implied yield?
LXLJ Ltd. has issued a 7-year zero-coupon bond with a face value of $1,000. What is the fair price of the bond if the yield to maturity is 6.9 percent per annum?
DEF Ltd just paid a dividend of $3.5 per share. Investors expect DEF will keep on paying the same amount of dividend every year forever. If the required rate of return is 8.5 percent per annum, what is the fair value of a DEF share today?
AMG Ltd issued a preference share with a face value of $100. The preferred dividend rate is 8.6%. If investors' required rate of return is 7.2 percent per annum, what is the fair value of an AMG preference share today?
Entrepreneurial Finance
ISBN: 978-0538478151
4th edition
Authors: J . chris leach, Ronald w. melicher