Several years ago, you purchased shares of BMO bank for $32/share. The bank pays a dividend of $0.50 per share every 3 months. When you go sell your shares, the current interest rate is 4% compounded quarterly. 

How much is expected gain (or loss) per share? The next divided is due in 3 months.

A few year ago you paid $15000 to buy a corporate bond with a face value (maturity value) of $15000 that has a coupon rate of 4% payable semi-annually (pays $300 every 6 months). If the bond matures in 20 years, how much is it worth today if the interest rate is for similar bonds is 7% compounded semi-annually?

A new project is under consideration by Goldshine Ltd. The project will last 5 years and require an initial investment of $25000. The annual expenses are estimated to be $3000 at the beginning of each year. The company will get a benefit of $10000 at the end of each year. The interest rate is 12% compounded annually. 

Find the net present value.

You just leased a Honda Civic that sells for $28950. The terms of your lease require you to make 36 payments of $416 per month with the first payment due the day the car was leased. At the end of 3 years you would have to pay $16956 to buy the car. 

What effective rate are you paying on the car lease?

You have just purchased a new house for $150000. The interest rate is 8% compounded semi-annually and you will make monthly payments for 20 years. 

What was the total interest paid during the fifth year of your mortgages? 

Answer rating: 100% (QA)

To calculate the expected gain or loss per share we need to consider both the dividend income and the change in the stock price due to changes in the interest rate First lets calculate the annual divi... View the full answer