Help me show the formula and work to get result
15. T-bills are zero coupon bonds issued at a discount. Hence the returns are reflected in the gain by holding the bill till maturity (180 days). Such returns would be $1,000-$990=$10. Yield can be calculated using the formula: (Returns / Price) * (360/holding period). Hence yield = ($10/$990)*(360/180) = 2.02%
16. Stock pays the dividend of $3 and returns 15%. This 15% is a dividend yield. Dividend Yield = Dividend / Market price. Hence Market Price = Dividend / Dividend Yield = 3/15% = $20
Happy Learning!
Help me show the formula and work to get result 15. What is the yield on...
7. (15 points) Consider a Tesla convertible note with a $1,000 par value that is convertible into Tesla common stock. It has a coupon of 6%, payable annually. The bond is priced at $990. This convertible bond has a conversion ratio of 20. The current stock price is $40 per share. What is the conversion value of the bond? What is the conversion premium of the bond? 8. (15 points) I buy a T-Bill with face value $1000 for $990....
What is the yield-to-maturity of a bond maturing in four years with a 4% coupon rate, a $1010 current price and a $1,000 par value please show work and the original formula used
Both answers are not correct so can you help me to solve them. Thank u QUESTION 3 A T-bill has 247 days to maturity. The T-bill par value is $1,000 and has an asked of 1.785%. What is the T-bill asked price in dollars? 988.10 QUESTION 4 A T-bill with 41 days to maturity has a $10,000 par value, a bid price of $9,995 and an asked price of $9,997. What is the asked yield? 0.2675 Click Save and Submit...
Can someone please help me with these homework problems? Please show all work, thumbs up guaranteed for best answer! I want to have $500,000 when I retire in 15 years. How much money must I deposit today into a savings account which pays an APR of 10% compounded annually? [4 points] If I invest $12,000 in a bank account which pays an APR of 5.2%, compounded weekly what will be the value of my investment after 10 years? [4 points)....
please help me solve this asap. Thanks! 13. If you buy a zero-coupon bond for $700 and it is redeemed at maturity 7 years later for face value, what is the yield to maturity? A$100 perpetual preferred stock pays an annual dividend of $5. Currently the yield on comparable preferred stock is 10 percent. What should b price of this stock? 14. e the A $100 perpetual stock pays an annual dividend of $5. Currently the stock is selling for...
You must show your work to get any credit. Anderson Corp just issued a stock dividend of$1.00 yesterday. The company plans on increasing the dividend by 5% per year for the next 5 years. After which, the dividend will grow at 4% forever. The required rate of return is 8%. A) Calculate the current price of the stock B) Calculate what the price of the stock should be in 1 year C) Calculate the Dividend yield and capital gains yield...
5. What is the current yield of a coupon bond of 12% if the face value is $2000 and its price is $2100? 6. What is the yield to maturity on a one-year, $1000 Treasury bill with a current price of $8502 7. What is the difference between interest rates and rate of returns?
What makes for a good investment? Use the approximate yield formula or a financial calculator to rank the following investments according to their expected returns. Round the answers to two decimal places. Do not round intermediate calculations. Buy a stock for $45 a share, hold it for 3 years, then sell it for $80 a share (the stock pays annual dividends of $3 a share). _________ % Buy a security for $20, hold it for 3 years, then sell it...
Will somebody please help me get this figured out for B....please show me the formula Name: Instructor: Intermediate Accounting Primer on Using Excel in Accounting Date: Course: E6-3 (Computation of Future Values and Present Values) Using the appropriate interest table or Exce formula, answer each of the following questions: (Each case is independent of the others.) -periods at (a) What is the future value of compounded interest? at the end of- $7,000 5 8% te Fomula (b) What is the...
Test: FIN 301 Exam x > 0133020312.pdf X ® FIN 432 - Investment A X G Get Homework Help W X G Using the formula force "webapps/assessment/take/launch.jsp?course assessment_id=_17709_18_course_id=_25356_1&.content_id=_431107_1&step=null Price today(P.) = Par/(required rate of return on the stock - expected growth rate in dividends) QUESTION 28 Using the formula for determining the value of a constant growth stock, and D=$1.00.r = 10% and g = 5%, the price of the stock today $15 $21 $25 QUESTION 29 If the dividend...