Question: 18 and 20 please QUESTION 18 If interest rates decrease by 25 basis points (original interest rate is 05), what is the price change for

18 and 20 please

QUESTION 18 If interest rates decrease by 25 basis points (original interest rate is 05), what is the price change for 30 year zero-coupon bond with a 5100 face value? 07.20N 14.114 14.20 3.45% QUESTION 19 What methods can we use to estimate the equity promium in CAPM? All the above are valid as long as you stay consistent with your choice Consensus survey Historical averages None of the above QUESTION 20 If the inflation rate is 6%, and a project with a cost of capital of 12% (real) will return $110 in nominal cash next year, what is the PV of the $110 dollars today? $91.54 $92.65 O $92.05 $90.20

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

if the interest rates decrease by 25 basis points (original interest rate 8%)is the % price change for a 30 year zero -coupon with $100 face value 7.20% 3.45 % 14.20% 14.94\%

QUESTION 15 What is the present value of a promise to receive $100 forever, beginning next year (t-1), if the interest rate is 6% per year? O $1,600 O $1,588 O $1,667 O $1,500 QUESTION 16 0 What...

What is the expected return if stock returns followed this historical distribution: +15%, -5%, -20%, 12%, and +15% 7 1.25% O2.10% O 3.40% O 3.25% QUESTION 7 If interest rates decrease by 25 basis...

You will get down vote if you copy the answer from other questions or get it wrong QUESTION 19 If interest rates decrease by 25 basis points (original interest rate is 8%), what is the % price change...

QUESTION 17 What is the present value of a firm that just paid $100 this year? The annual cash flow is expected to grow at 2.5% forever and the interest rate is 6% per year. $2,857 $2,000 $2.929...

12.5 QUESTION 2 If interest rates increase by 15 basis points (original Interest rate is 8%), what is the price change for a 1 year zero-coupon bond with a $100 face value? -0.20% -0.10% -0.14%...

QUESTION 19 What is the present value of a firm that just paid $100 this year? The annual cash flow is expected to grow at 2.5% forever and the interest rate is pr O $2.000 O $2,857 $2,920 QUESTION...

Consider the following term and YTM of 5 hypothetical Treasury securities with a par value of 100 Ksh. Term Coupon rate YTM price 0.5 0 0.080 96.15 1 0.0 0.083 92.19 1.5 0.085 0.089 99.45 2 0.09...

QUESTION A Consider the following term and YTM of 5 hypothetical Treasury securities with a par value of 100 Ksh. Term Coupon rate YTM price 0.5 0 0.080 96.15 1 0.0 0.083 92.19 1.5 0.085 0.089 99.45...

Part A 50% Answer exactly six of the following eight numerical questions. Please provide numerically accurate answers; rough approximations will not be counted. If you wish to receive partial credit...

Most people have IQ scores between 70 and 130. For $32, you can purchase a computer program from Highiqpro.com that is claimed to increase your IQ score by 10 to 20 points. The program claims to be...

LILBANK is a bank with four rooms, every adjacent room is connected with the door. All rooms also have an external door. There is a security agent (Guard G) in the bottom leftmost corner. There is a...

If you expect stock volatility to fall but have no particular view of direction, then you should A . Buy put options. B . All of the above. C . Sell call options. D . Sell stock now.

Draw a class diagram and its relationship based on the following statements. You can use any UML tool/software to represent your class diagram. Do NOT copy and paste your diagram, use the attachment...