Question: Please answer this two questions. Thanks 3) Consider a 4-year, $1000 par value bond with zero coupons. If the yield to maturity is 10%, what
3) Consider a 4-year, $1000 par value bond with zero coupons. If the yield to maturity is 10%, what would be the price of this bond at issuance (t=0)? Suppose you buy this bond at issuance, and after your purchase yield to maturity increases to 12% and stays at that level. If you hold this bond and sell it after two years (t=2), what would be your annualized holding period return (aHPR)? (for this question, you may assume annual compounding) 4) Sisters Corp. expects to earn $6 per share next year. The firm's ROE is 15% and its plowback ratio is 60%. If the firm's required rate of return is 10%, what is the present value of its grow opportunities
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