Question

16) Nico Corp issued bonds bearing a coupon rate of 12 percent, pay coupons annually, have 3 years remaining to maturity, and are currently priced at $940 per bond. What is the yield to maturity A) 12.00% B) 13.99% C) 14.54% D) 14.61% 17) What is the current price of a $1,000 par value bond maturing in 9 years with a coupon rate of percent, paid annually, that has a YTM of 9 percent? A) $700 B) $945 C) $940 D) $1,062 18) Which of the following typically applies to common stock but not to preferred stock? A) par value B) dividend yield C) legally considered as equity in the firm D) voting rights 19) Aunt Butch borrows $19,500 from the bank at 8 percent annually compounded interest to be repaid in 10 equal annual installments. The monthly payment is A) $1,336.00 B) $1,560.14 C) $2,906.08 D) $1,947.10 20) Aunt Butch borrows $19,500 from the bank at 8 percent annually compounded interest to be repaid in 10 equal annual installments. The interest paid in the second year is A) $1,336.00 B) $1,452.31 C) $1,570.07 D) $1,947.10 21) Which of the following is true of outstanding shares? A) A firm cannot sell more shares than the outstanding shares mentioned in the charter. B) Authorized shares become outstanding shares when they are issued or sold to investors C) Outstanding shares are indicated in a firm's corporate charter. D) Outstanding shares are the shares repurchased by the firm. 22) Common stockholders expect to earn a return by receiving A) semiannual interest B) fixed periodic payments C) dividends D) annual interest

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Answer 1

12.0% COUPON RATE NPER = YEARS TO MATURITY $120.00 (face value x coupon rate) PMT $1,000.00 FACE VALUE PRICE PV $940.00 14.61% Yield to maturity RATE rate(nper,pmt,-pv,fv) rate(3,120,-940,1000)