Question
show solution in excel 1- Uncle Frodo left you a pension trust that will pay you $5,428 per quarter for the next 29 years with
show solution in excel
1- Uncle Frodo left you a pension trust that will pay you $5,428 per quarter for the next 29 years with the first payment received one quarter from today. If the annual interest rate is 5.3 percent, but compounded quarterly, what is the value of the payments today?
2-What is the effective annual rate for an APR of 11.8 percent compounded monthly?
2-XYZ Corp. issued 13 years ago at a coupon rate of 8 percent. The bonds make semiannual payments. If these bonds currently sell for 115 percent of par value, what is the YTM?
3-The risk-free rate of return is 3.4 percent and theexpected market returnis 12.4 percent. What is the expected rate of return on a stock with a beta of 1.2?
4-The risk-free rate of return is 2.3 percent and themarket risk premiumis 5.7 percent. What is the expected rate of return on a stock with a beta of 1.1?
5-Suppose ABC Inc,justpaid a dividend of $5 and it is expected to grow at a constant rate of 4.3% perpetually. Compute the current value of the stock if the required rate of return = 15%.
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