Problems (pp. 210211)
51 Bond Valuation with Annual Payments
Jackson Corporation’s bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 8%. The bonds have a yield to maturity of 9%. What is the current market price of these bonds?
P = F*r*[1 (1+i)^n]/i + C*(1+i)^n, where
F = par value
C = maturity value
r = coupon rate per coupon payment period
i = effective interest rate per coupon payment period
n = number of coupon payments remaining
F = 1000. Since we are not given the maturity value, we can assume that it is the same as the par value. So, C = 1000.
r = .08
i = .09
n = 12
The bond price is 1000*.08 * (1  1.09^12)/.09 + 1000*1.09^12 = $928.39
52 YTM for Annual Payments
Wilson Wonders’s bonds have 12 years remaining to maturity. Interest is paid annu ally, the bonds have a $1,000 par value, and the coupon interest rate is 10%. The bonds sell at a price of $850. What is their yield to maturity?
Given:
TTM = 12 years Par = $1,000
Using Finance Functions on 12c: n = 12 PMT = 100 PV = 850 i = 12.4751%
C = 10% ($100) Price = $850 YTM = solve
PMT = 100 i = solve
Yield to Maturity = 12.48%
56 Maturity Risk Premium
The real riskfree rate is 3%, and inflation is expected to be 3% for the next 2 years. A 2year Treasury security yields 6.3%. What is the maturity risk premium for the 2year security? r = r* +IP+DRP+LP+MRP
6.2=%3% + 3% + 0 + 0 + MRP
57 Bond Valuation with SemiAnnual Payments
Renfro Rentals has issued bonds that have a 10% coupon rate, payable semiannually. The bonds mature in 8 years, have a face value of $1,000, and a yield to maturity of 8.5%. What is the price of the bonds?
FV 1,000 PMT 50 N 16 R 4.25% Present Value = $1,085.80
513 Yield to Maturity and Current Yield
You just purchased a bond that matures in 5 years. The bond has a face value of $1,000 and has an 8% annual coupon. The...
...years. 
3. (TCO D) The Ramirez Company's last dividend was $1.75. Its dividend growth rate is expected to be constant at 25% for 2 years, after which dividends are expected to grow at a rate of 6% forever. Its required return (rs) is 12%. What is the best estimate of the current stock price? a. $41.58
b. $42.64
c. $43.71
d. $44.80
e. $45.92(Points : 20)

4. (TCO G) The ABC Corporation's budgeted monthly sales are $4,000. In the first month, 40% of its customers pay...
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MAT540 Week3 Homework
Chapter 14
1. The Hoylake Rescue Squad receives an emergency call every 1, 2, 3, 4, 5, or 6 hours, according to the following probability distribution. The squad is on duty 24 hours per day, 7 days per week:
Time Between
Emergency Calls (hr.)
Probability
1
0.05
2
0.10
3
0.30
4
0.30
5
0.20
6
0.05
1.00
a. Simulate the emergency calls for...
...CLICK TO DOWNLOAD
EDU 390 Week 1 to 3WEEK ONE
Individual: Reflection Paper on Becoming a Teacher
Write a 700 to 1,050word reflection paper on becoming a teacher that includes the following:
Reasons for wanting to become a teacher
Personal characteristics that may make you an effective teacher
How you will stay current in the field of education
How you will maintain your passion about teaching
Your educational philosophy
Learning...
...CARLA IQBAL CACHE LEVEL 5 PIN:
3.1 Analyse the importance of early identification of developmental delay.
3.2 Explain the potential risks of late recognition of developmental delay.
When a child is not doing what other children his or her age usually we say they have a developmental delay. These children develop more slowly or differently from what we expect. This can be physical, cognitive, communicative, social, or emotional. For example, a child who is delayed may not...
...

Refining Solutions
It is essential to refine ideas and solutions to find the highest quality solution to a problem. The creative thinking process is used to produce ideas but the critical thinking process is used to evaluate and refine ideas and solutions. Applying criticism to ideas and solutions reduces the risk for error and makes good ideas even better (Ruggiero, 2009). In this paper Arguments will be evaluated and revised resulting in a refined and final solution to the...
...
Category
Points
Description
Section 1
A Simple Network Using RIP Protocol: 20 Points
Task 2: Step 3
Related Explanation or Response
Task 2: Step 4
Related Explanation or Response
Task 4: Step 1
Related Explanation or Response
Task 5: Step 1
Related Explanation or Response
Summary Paragraph
1
2
1
2
1
2
1
2
8
Paste the requested screenshot.
Provide the requested answer.
Paste the requested screenshot.
Provide the requested answer....
...Student Exam
1/16/12 9:14 AM
Week3 : Managing Assets and Resources in the Digital Firm  Homework
Save Answers Submit for Grading
1. A characteristic or quality describing an entity is called a(n) (Points : 1)
field. tuple. key field. attribute.
2. The confusion created by _____ makes it difficult for companies to create customer relationship management, supply chain management, or enterprise systems that integrate data from different sources....
...was restoration. Today’s notion of restorative justice has several concepts that identify needs. Three of the concepts are as follow (1) the need to compensate victims, (2) the need to place appropriate responsibility on the criminal offender,
and (3) the need to attempt reintegration of the offender with the community. (Criminal Law Today: Frank Schmalleger, Ph.D.). The U.S Department of Justice did a report on restorative justice explaining it by saying “Crime was once...
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