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strayer fin100 week 6 homework




Question;1. Compute the annual interest payments and principal amount for a;Treasury Inflation- Protected Security with a par value of $ 1,000 and a 3;percent interest rate if inflation is;4 percent in year one;5 percent in year two, $;2.;and 6 percent in year three.;3. Using the regular Treasury note of;problem 2: (5.06%) par value $1,000;a. What is its price if investors? required;rate of return is 6.09 percent on similar bonds?;Treasury notes pay interest semi-annually.;b. Erron Corporation wants to issue five-;year notes but investors require a credit risk spread of 3 percentage points.;What is the anticipated coupon rate on the Erron notes?;23. The Joseph Company has a stock issue;that pays a fixed dividend of $ 3.00 per share annually. Investors believe the;nominal risk- free rate is 4 percent and that this stock should have a risk;premium of 6 percent. What should be the value of this stock?;1. Given the information below, compute;annualized returns;ASSET;INCOME;PRICE CHANGE;PRICE INITIAL;TIME PERIOD;A;$2;$6;$29;15 MONTHS;B;0;10;40;11 MONTHS;C;50;70;30;7 YEARS;D;3;-8;20;24 MONTHS;-;2.;Given the information below, compute annualized returns;ASSET;PURCHASE PRICE;CURRENT PRICE;INCOME RECEIVED;TIME PERIOD;A;$20;$26;$2;75 WEEKS;B;15;18;0.40;3 MONTHS;C;150;130;0;2 YEARS;-;D;3.50;3.00;.20;8 MONTHS;-


Paper#48776 | Written in 18-Jul-2015

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