Question: PLEASE HELP CHECK MY ANSWERS PLEASE! please exclude question 29 29). The _value of a bond is also called its face value. Bonds which sell
29). The _value of a bond is also called its face value. Bonds which sell at less than face value are priced at a while bonds which sell at greater than face value sell ata. A) par; premium; discount B) discount; par; premium C) premium; discount; par D) coupon; premium; discount E) par; discount; premium 30) Calculate the price of a 1-year bond paying coupon rate 10% semi-annually with a YTM 8% and face value $100. A) $94 B) $94.30 C) $101.88 D) $94.65 31) What is the approximate yield to maturity for a $1,000 par value bond selling for $1,120 that matures in 6 years and pays 12 percent interest annually? A) 12.0 percent B) 9.4 percent C) 13.05 percent D) 13.2 percent 32) The current yield of a bond is 10% and the bond is traded at $600. Calculate the coupon payment and the annual coupon rate. A) 10% and $60 B) $60 and 6% C) $60 and 8% D) $60 and 10% 33) Suppose an investor wants to have $1 million to retire 45 years from now. How much would she has to invest today with an annual rate of return equal to 15 percent? A) $18,561 B) $17,844 C) $1,856.01 D) $20,003 34) The WACC of a corporation is calculate with CAPM and found equals to 15%, while when estimated based on the constant growth model was found equals to 16.5%. Then: A) The WACC estimated with CAPM is more accurate because risk is considered explicitly B) The WACC estimated with CAPM is more accurate C) Both are accurate measures of the estimated WACC of the corporation D) WACC is more accurate when estimated using Gordon model
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