1. What is the IRR of the following set of cash flows? Year Cash Flow...
1.
| What is the IRR of the following set of cash flows? |
| Year | Cash Flow |
| 0 | –$8,868 |
| 1 | 3,800 |
| 2 | 4,400 |
| 3 | 5,100 |
rev: 09_18_2012
23.18%
22.08%
22.52%
20.98%
21.64%
2.
A bond has a market price that exceeds its face value. Which of
the following features currently apply to this bond?
I. discounted price
II. premium price
III. yield-to-maturity that exceeds the coupon rate
IV. yield-to-maturity that is less than the coupon rate
I and IV only
II and IV only
I and III only
III only
II and III only
Homework Answers
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1.
What is the IRR of the following set of cash flows?
Year
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2 5. What is the rate of interest on a 1 year loan starting 3 years from now, implied by the following term structure: (i) A 1-year zero coupon bond has a yield to maturity of 1%, (ii) A 2-year zero coupon bond has a yield to maturity of 2%, (iii) A 3 year zero coupon bond has a yield to maturity of 3%, (iv) A 4-year zero coupon bond has a yield to maturity of 4% a. 1% b....
The dividend growth model: I. cannot be used to value zero-growth stocks. II. cannot be used to compute a stock price at any point in time. III. requires the required return to be higher than the growth rate. IV. assumes that dividends increase by a constant amount forever. V. none of the above is correct Multiple Choice 0 II, and IV only 0 V only 0 1, I, II, and IV only 0 Ill only 0 In order to estimate...
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hello, I need help with this questions
Price / Cash Flow b. Market/Book Value Prie/aming pee Share d. CAC Labs 6) Which is not a potential limitation of ratio analysis? (point) a. Comparison with industry averages b. Seasonal factors c. Same account practices d. None of above 7) Which of the following statements is FALSE? (1 point) a. The process of moving a value or cash flow forward in time is known as compounding b. The effect of earning interest...
Irene's uncle has given her $6,000 today. She is required to open a savings account today and deposit the money in it. She will not be able to withdraw any money from this account before her graduation from college. Irene plans on withdrawing all the money from the account on her graduation. She expects that she will graduate in three years. If we assume that the interest rate remains the same on her deposit, what will happen to the future...
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