value of $1‚000. There are eight years to maturity. The yield to maturity is 9%. What is the current price of the bond? $1000 * 10%/2= 50 P= 50 * (1/.09) {1-[1/(1.09)^8} + [1000/(1.09)^8]80.29 = 555.56 (.50) + 502.51 = 277.78+ 502.51 = $780.29 Bonds-4. A particular corporate bond has a par value of $1‚000. Coupon payments are $40 and are paid twice a year. Seven years are left on the life of the bond.The YTM is 9%. What is the price of the bond? P= 80 * (1/.09) {1-{1/(1.09)^7} + [1000/(1.09)^7] =
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Industrial Organization‚ Spring Semester (2013) Mark McCabe Problem Set 1 Due in class on 27. March Instructions: Please show all of your work‚ e.g. all of the calculations associated with each solution. Your solutions should be typed and not handwritten. As I mentioned in class‚ students may work together to solve these problems‚ but plagiarism or copying is not permitted. On the 27th‚ please bring a paper copy to class‚ and e-mail me a digital copy (mccabe@umich.edu) before the beginning
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Rodriguez operates a variety store that provides an annual revenue of $480 000. Each year‚ he pays $25 000 in rent for the store‚ $15 000 in business taxes‚ and $350 000 on products to sell. He estimates he could put the $80 000 he has invested in the store into his friend’s restaurant business instead and earn an annual 20 percent profit on his funds. He also estimates that he and his family could earn a total annual wage of $90 000 if they worked somewhere other than the store. a. Calculate
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Problem set 2.2 This question Is mainly concentration on the price changed effect. As the price raise ‚what is the changed to the quantity‚ turnover ‚and the market equilibrium. And the assumption are as following: The demand of the concert remain unchanged‚ the supply of the concert also unchanged( which consist on 3 concerts) ‚so the supply curve is vertical. In the question‚ the concert price in 2005 is $500 and all the tickets have been sold out which are 12000seats. The turnover is 12000seats
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of good 1‚ we obtain: x1* = I / 2px1 b) x1* = 24 / (2∙1) = 12 x2* = 24 / (2∙2) = 6 c) x1* = 24 / (2∙1) = 12 x2* = 24 / (2∙3) = 4 d) Substitution effect = ɗx/ɗpx = – I/2px2 Income effect = – xɗx/ɗI = – x/2px The price of good 1 did not change‚ so there is no effect. The price of good 2 rose to €3. Substitution effect = – 24 / (2∙32) = – 1‚33 Income effect = – 4 / (2∙3) = –
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Unrealized intercompany profit included therein = $6‚250; $6‚250 0.25 = (1‚563) Profit included in consolidated income 34‚737 Percentage interest 0.10 Noncontrolling interest in consolidated income $ 3‚474 Exercise 6-4 The $600‚000 that could not be assigned to specific assets and liabilities is assumed to represent goodwill (the unidentifiable intangible asset)‚ which is not amortized under current GAAP but is reviewed periodically for impairment. In contrast‚ identifiable
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FINA 5210 Problem Set 1 (Group 305) Problem 1 (a) WpC=[E(rp)-rf] ÷Aσp2 =6%÷2.5×(20%)2 =60% WfC=100% - 60% = 40% (b) Expected return of Complete portfolio is: rCEc= WpC×E(rp)+ WfC×rf =60%×10% + 40%×4% =7.6% The standard deviation of Complete portfolio is: σc = WpC × σp = 60% × 20% = 12% Certainty-equivalent rate of return for investing in C: rc CE= Uc = rCEc- 1/2Aσc2 = 7.6% - 0.5×2.5×12%2 = 5.8% Certainty-equivalent rate of return for investing in P: rp CE= Up= rCEp- 1/2Aσp2
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rather than invest in mutual funds 4) More stock transactions are conducted online than on the floor of an exchange b) Which of the following would BEST achieve diversification? 1) Investing in 10 securities of companies in the same industry in Canada 2) Investing in 10 securities of companies in the same industry in Canada‚ the United States‚ and Mexico 3) Investing in 10 securities of companies in different industries in North America‚ Europe‚ and Asia 4) Investing in 10 securities of companies
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Question 4 (25 marks) Golden Golf Inc. has been in merger talks with Birdie Golf Company for the past six months. After several rounds of negotiations‚ the offer under discussion is a cash offer RM550 million for Birdie Golf. Both companies have niche markets in the golf club industry‚ and both believe that a merger will result in synergies due to economies of scale in manufacturing and marketing‚ as well as significant savings in general and administrative expenses. Bryce Bichon‚ the financial
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This archive file of HCA 305 Week 1 Discussion Questions shows the solutions to the following problems: DQ 1: With so many different stakeholders in the health care system‚ many with powerful political lobbies‚ it is understandable that the government has been unable to effectively address the problems of cost‚ access‚ and quality. With the passing of the Patient Protection and Affordable Care Act of 2010 (PPACA)‚ the government has taken a step towards reshaping the health care system.
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