Question: ASAAP!!!!! Please!!!!! HELP!!!! 1. What is the yield to maturity of a bond that has a$1,000 par value and a 6% coupon rate? The bond
ASAAP!!!!! Please!!!!! HELP!!!! 1. What is the yield to maturity of a bond that has a$1,000 par value and a 6% coupon rate? The bond is currently selling for $1,100 and will mature in 13 years. 2. Ron wants to create a trust fund for heirs. How much does he need to deposit in an account that earns 6% if he wants them to receive $90,000 per year forever? 3. what is the expected return of a stock with a beta of .8? The risk-free rate is 2% and the market return is 9%. 4. You are interested in investing in a company that expects to grow steadily at an annual rate of 6 % for the foreseeable future. The firm paid a dividend of $2.30 last year. If your required rate of return is %10, what is the most you would be willing to pay for this stock? ( Round to the nearest dollar) 5. What is the yield to maturity of a bond that has a $1,000 par value and a 6% coupon rate? The bond is currently selling for $1,100 and will mature in 13 years. 6. How much money will you accumulate in 40 years if you deposit $37,000 today in an account that earns 5% compounded monthly? (Round to the nearest dollar). 7. Ron wants to create a trust fund for his heirs. How much does he need to deposit in an account that earns 6% if he wants them to receive $90,000 per year forever
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
