You were planting a garden in your back yard and came upon a buried treasure. First,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You were planting a garden in your back yard and came upon a buried treasure. First, you open an envelope with a series of ten $5,000 savings bonds, each maturing one year after the other starting next year. There is also an envelope with a $10,000 bond maturing in fifteen years. If interest rates are 4%, what is the present value of your find? 2. You purchased 18 shares of stock five years ago for $26.25 per share. The company pays a $0.31 quarterly dividend. If the stock is now trading at $34.00 per share: a. What is your total return in $ and in %? b. What is your annualized return in %? You were planting a garden in your back yard and came upon a buried treasure. First, you open an envelope with a series of ten $5,000 savings bonds, each maturing one year after the other starting next year. There is also an envelope with a $10,000 bond maturing in fifteen years. If interest rates are 4%, what is the present value of your find? 2. You purchased 18 shares of stock five years ago for $26.25 per share. The company pays a $0.31 quarterly dividend. If the stock is now trading at $34.00 per share: a. What is your total return in $ and in %? b. What is your annualized return in %?
Expert Answer:
Answer rating: 100% (QA)
SOLUTION 1 To calculate the present value of the savings bonds we need to find the present value of each bond separately and then sum them up The form... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these finance questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
-
Which type of Organizational Model put the MOST emphasis on establishing MORALE and AUTONOMY O a. Hierarchical style Model b. O c. O d. Flat Management (Holocracy) Model Multi-divisional style Model...
-
In the study The Use of Regression Analysis for Correcting Matrix Effects in the X-Ray Fluorescence Analysis of Pyrotechnic Compositions, published in the Proceedings of the Tenth Conference on the...
-
What is the signature of a function and how is a function's signature related to name mangling in \(\mathrm{C}++\) ? How do you think this facilitates how overloaded functions are handled internally...
-
The following TI-84 Plus display presents the results of a test of the null hypothesis H0 : 1 = 0. a. What is the alternate hypothesis? b. What is the value of the test statistic? c. How many degrees...
-
The ownermanager of Good Guys Enterprises obtains utility from income (profit) and from having the firm behaves in a socially conscious manner, such as making charitable contributions or civic...
-
Q4 - Bond Valuation Value the following bonds 20-year bond with a face value of $10,000 with an annual coupon of 5% and market rate (yield to maturity or YTM) of 6.5% 10-year bond with a coupon of 8%...
-
For the case The WM. Wrigley Jr. Company: Capital Structure, Valuation, and the Cost of Capital(Darden Case: UVAF1482) please answer the following questions and explain your reasoningwhere...
-
Consider a database of movie information. Suppose we want to allow users to get information about: - movies - actors - directors - Awards Assume that each movie has a single director, and we will...
-
Compute the debt-to-equity ratio for each company as of December 31, 2020. Which company relies more on creditor financing? ($ Millions) Coffee Tea Total liabilities, 2020 $66,012 $ 79,366 Total...
-
An object's velocity can be described according to the equation v = 8 t 2 + 4 m s . What is the acceleration at t = 2 s .
-
What mechanisms do we have in place to monitor and evaluate the effectiveness of our strategic implementation ?
-
In honor of Keeping up with the Kardashians coming to an end... Kim's first engagement ring from Kanye included a 15 carat diamond. Diamond is exclusively made up of carbon. Given that 1 carat is...
-
mass 56.11 kg, from the bottom of the chute. A package of mass 20.57 kg is released from rest at a warehouse loading dock and slides down a 2.22-m-high frictionless chute to a waiting truck....
-
Restrict the domain of the original function so that it is a one-to-one function and invertible. Determine the range the restricted function. Use a table to find the inverse.Then of graph the...
-
True & False The basis of an asset must be reduced by the depreciation allowable, 2. Adjusted gross income (AGI) is the basis for a number of phase-outs of deductions. 3. A change to adjusted gross...
-
Jim (age 50) and Martha (age 49) are married with three dependent children. They file a joint return for 2012. Their income from salaries totals $50,000, and they received $10,000 in taxable...
-
Jason and Mary are married taxpayers in 2012. They are both under age 65 and in good health. For this tax year, they have a total of $41,000 in wages and $500 in interest income. Jason and Mary's...
-
Sally and Charles Heck received the following dividends and interest during 2012: Assuming the Hecks file a joint tax return, complete Schedule B of Form 1040 (on page 2-33) for them for the 2012 tax...
-
The load resistor in the NMOS inverter in Figure \(16.3(\mathrm{a})\) is \(R_{D}=40 \mathrm{k} \Omega\). The circuit is biased at \(V_{D D}=3.3 \mathrm{~V}\). (a) Design the transistor...
-
The inverter circuit in Figure 16.3 (a) is biased at \(V_{D D}=3.3 \mathrm{~V}\). Assume the transistor conduction parameter is \(K_{n}=50 \mu \mathrm{A} / \mathrm{V}^{2}\). (a) Let \(R_{D}=100...
-
(a) Redesign the resistive load inverter in Figure 16.3 (a) so that the maximum power dissipation is \(0.25 \mathrm{~mW}\) with \(V_{D D}=3.3 \mathrm{~V}\) and \(v_{O}=0.15 \mathrm{~V}\) when the...
Study smarter with the SolutionInn App