Homework Answers
10-Year Rate = R10 = 9% and Liquidity Premium = 0.3 %
Actual 10-Year Rate = R10 = 9 - 0.3 = 8.7 %
4-Year Rate = R4 = 7% and let the 6-year rate 4 years from now be f6
Therefore, f6 = {[1+R10]^(10)/[1+R4]^(4)}^(1/6) - 1 = [{(1.087)^(10)/(1.07)^(4)}^(1/6)] - 1 = 0.09848 or 9.848 %
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Can i get it solved step by step please (not on excel if applicable 15. Suppose today's 10-year rate is 9 percent. Today's 4-year rate is 7 percent. Estimate the 6-year forward rate in fou...
Can i get it solved step by step please (not excel) 3. Suppose the risk-free rate...
Can i get it solved step by step please (not excel)
3. Suppose the risk-free rate is 4%. Suppose that the expected market risk premium is 5%, the excess return of a stock for a small firm over that of a stock for a large firmis 3%, the excess return of a stock for a firm with a high book-market value over that of a stock for a firm with a high book-market value is 4%. Suppose that company XYZ...
Can I get it solved step by step please Consider a 30-year U.S. municipal bond with...
Can I get it solved step by step please Consider a 30-year U.S. municipal bond with 25 years left to maturity. The bond carries an 6.5 percent coupon and is priced at $985? What is the after-tax yield to maturity for an investor with a 30 percent marginal tax rate?
I need this solved step by by step please by hand. Please no Excel. Thank You!...
I
need this solved step by by step please by hand. Please no Excel.
Thank You!
6) (28 points) A company is considering a replacement for an aging machine that has been fully depreciated for tax purposes. The new machine will have an initial cost of $400,000 and is expected to generate an income of $125,000 per year. Its estimated salvage value at the end of its useful life of 4 years will be $60,000. The new machine is a...
I need this solved step by step and by hand. Please no Excel. Thank You! 1...
I
need this solved step by step and by hand. Please no Excel. Thank
You!
1 7) (35 points) EmKay, Inc. is considering the purchase of new automated equipment to increase its production capacity. For this purchase, the following data apply: Purchase price = $450,000 (S250,000 from own funds (equity) and $200,000 from a loan) Equipment Life: 4 years Depreciation: MACRS-GDS 3-year property Estimated salvage: $90,000 Effective tax rate: 35% EOY Expected O&M Costs Estimated revenue $30,000 $180,000 2 $40,000...
please I wanted answered step by step 9) How many 4-digit numbers can be formed using...
please I wanted answered step by step
9) How many 4-digit numbers can be formed using the digits 0, 1, 2, 3, 4, 5, 6, 7, 8, 9, if repetitions of digits are allowed? A) 256 four-digit numbers B) 8999 four-digit numbers C) 10,000 four-digit numbers D) 9000 four-digit numbers 10) If $4100 earned simple interest of $233.02 in 11 months what was the simple interest rate? A) 7.2% B) 6.2% C) 8.2% D) 5.2% 11) How long will it...
Hello, can I get a step by step solution using excel. Thank you Titan Mining Corporation...
Hello, can I get a step by step solution using excel. Thank you
Titan Mining Corporation has 9.5 million shares of common stock outstanding and 390,000 4.9 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $43 per share and has a beta of 1.15; the bonds have 15 years to maturity and sell for 114 percent of par. The market risk premium is 8.3 percent, T-bills are yielding 4 percent, and the company's tax...
can you help step-by-step so I can enter into Excel are not supported in Tears and...
can you help step-by-step so I can enter into Excel
are not supported in Tears and have been disabled A1 B с E G H K L M N 1 2 3 D 21. Rate of Return. A bond is issued with a coupon of 4% paid annually, a maturity of 30 years, and a yield to maturity of 7%. What rate of return will be carned by an investor who purchases the bond for $627.73 and holds it for...
Q Search this course Interest rate premiums Excel Online Structured Activity: Interest rate premi...
Q Search this course Interest rate premiums Excel Online Structured Activity: Interest rate premiums A 5-year Treasury bond has a 3% yield. A 10-year Treasury bond yields 6.1%, and a 10-year corporate bond yelds 8 65%. average 3.6% over the next 10 years (IP10-3.6%). Assume that there is no maturity risk premium (MRP-0) The mar ket expects that inflation will er the next 10 years. (Hint: Remember that the default risk premium and the liquidity premium are zero for Treasury...
All questions please Question 4 A particular security's equilibrium rate of return is 10% For all...
All questions please
Question 4 A particular security's equilibrium rate of return is 10% For all securities, the inflation risk premium is 2.75 percent and the real interest rate is 3 percent. The security's liquidity risk premium is 50 percent and maturity risk premium is .75 percent. The security has no special covenants. What is the security's default risk premium? Hint:i IP+RIR+ DRP+LRP+SCP+ MRP 2% 4% 5% 6% Question 5 1 pts Suppose we observe the following rates: 1R1-08, 1R2...
I need help answering questions 9-1 thru 9-7. Step by step would be very appreciated. Problems...
I need help answering questions 9-1 thru 9-7. Step by step
would be very appreciated.
Problems 9-1 If you invest $500 today in an account that pays 6 percent interest compounded nnually, how much will be in your account after two years? What is the present value of an investment that promises to pay you $1,000 in five years if you can earn 6 percent interest compounded annually? 9-2 9-3 What is the present value of $1,552.90 due in 10...
Can i get it solved step by step please (not excel)
3. Suppose the risk-free rate is 4%. Suppose that the expected market risk premium is 5%, the excess return of a stock for a small firm over that of a stock for a large firmis 3%, the excess return of a stock for a firm with a high book-market value over that of a stock for a firm with a high book-market value is 4%. Suppose that company XYZ...
I
need this solved step by by step please by hand. Please no Excel.
Thank You!
6) (28 points) A company is considering a replacement for an aging machine that has been fully depreciated for tax purposes. The new machine will have an initial cost of $400,000 and is expected to generate an income of $125,000 per year. Its estimated salvage value at the end of its useful life of 4 years will be $60,000. The new machine is a...
I
need this solved step by step and by hand. Please no Excel. Thank
You!
1 7) (35 points) EmKay, Inc. is considering the purchase of new automated equipment to increase its production capacity. For this purchase, the following data apply: Purchase price = $450,000 (S250,000 from own funds (equity) and $200,000 from a loan) Equipment Life: 4 years Depreciation: MACRS-GDS 3-year property Estimated salvage: $90,000 Effective tax rate: 35% EOY Expected O&M Costs Estimated revenue $30,000 $180,000 2 $40,000...
please I wanted answered step by step
9) How many 4-digit numbers can be formed using the digits 0, 1, 2, 3, 4, 5, 6, 7, 8, 9, if repetitions of digits are allowed? A) 256 four-digit numbers B) 8999 four-digit numbers C) 10,000 four-digit numbers D) 9000 four-digit numbers 10) If $4100 earned simple interest of $233.02 in 11 months what was the simple interest rate? A) 7.2% B) 6.2% C) 8.2% D) 5.2% 11) How long will it...
Hello, can I get a step by step solution using excel. Thank you
Titan Mining Corporation has 9.5 million shares of common stock outstanding and 390,000 4.9 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $43 per share and has a beta of 1.15; the bonds have 15 years to maturity and sell for 114 percent of par. The market risk premium is 8.3 percent, T-bills are yielding 4 percent, and the company's tax...
can you help step-by-step so I can enter into Excel
are not supported in Tears and have been disabled A1 B с E G H K L M N 1 2 3 D 21. Rate of Return. A bond is issued with a coupon of 4% paid annually, a maturity of 30 years, and a yield to maturity of 7%. What rate of return will be carned by an investor who purchases the bond for $627.73 and holds it for...
Q Search this course Interest rate premiums Excel Online Structured Activity: Interest rate premiums A 5-year Treasury bond has a 3% yield. A 10-year Treasury bond yields 6.1%, and a 10-year corporate bond yelds 8 65%. average 3.6% over the next 10 years (IP10-3.6%). Assume that there is no maturity risk premium (MRP-0) The mar ket expects that inflation will er the next 10 years. (Hint: Remember that the default risk premium and the liquidity premium are zero for Treasury...
All questions please
Question 4 A particular security's equilibrium rate of return is 10% For all securities, the inflation risk premium is 2.75 percent and the real interest rate is 3 percent. The security's liquidity risk premium is 50 percent and maturity risk premium is .75 percent. The security has no special covenants. What is the security's default risk premium? Hint:i IP+RIR+ DRP+LRP+SCP+ MRP 2% 4% 5% 6% Question 5 1 pts Suppose we observe the following rates: 1R1-08, 1R2...
I need help answering questions 9-1 thru 9-7. Step by step
would be very appreciated.
Problems 9-1 If you invest $500 today in an account that pays 6 percent interest compounded nnually, how much will be in your account after two years? What is the present value of an investment that promises to pay you $1,000 in five years if you can earn 6 percent interest compounded annually? 9-2 9-3 What is the present value of $1,552.90 due in 10...
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