Finance Answers

a coupon bond is purchased for $900 with the maturity period of 6 years. the coupon payment of $50 is to be paid at the end of each half year. if the desired rate of return (yield rate) is J2=12% p.a. , then the face value of the bond is;

what annual deposits are needed for 10 years to provide for a perpetuity of $3000 per year with the first payment due at the end of 11, 1 year after the final deposit with J1 = 8% per annum

Suppose our company has a beta of 1.5. The market risk premium is expected to be 9%, and the current risk-free rate is 6%.

•We have used analysts’ estimates to determine that the market believes our dividends will grow at 6% per year and our last dividend was $2.

•Our stock is currently selling for $15.65. What is our cost of equity?

Explain the impact on cash flows of a build-up in inventory during this pandemic and how can companies mitigate the financial impact

The Z-score uses multiple corporate income and balance sheet values to measure the financial health of a company. Assess the credit risk (z-score) of a potential borrowing firm with the following financial ratios: X1 = 0.2, X2 = 0, X3 = 0.2, X4 = 0.1, X5 = 2.0

9. Shanz Enterprises has a beta of 1.28, the real risk-free rate is 2.00%, investors expect a 3.00% future inflation rate, and the market risk premium is 4.70%. What is Kollo's required rate of return?

5. Home for less Corporation's bonds have a 10-year maturity, a 6.25% semiannual coupon, and a par value of $1,000. The going interest rate (rd) is 4.75%, based on semiannual compounding. What is the bond’s price?

3. The common stock of Bruner Aeronautics sells for $80 a share. The stock expects to pay $2 per share next month when the annual dividend is distributed. The company has a established a pattern of increasing their dividends by 2% annually. What is the market rate of return on this stock?

The Z-score uses multiple corporate income and balance sheet values to measure the financial health of a company. Assess the credit risk (z-score) of a potential borrowing firm with the following financial ratios: X1 = 0.2, X2 = 0, X3 = 0.2, X4 = 0.1, X5 = 2.0

An institution holds 10million shares of one company and 50million ounces of a commodity. The shares are bid $89.5, offer $90.5. The commodity is bid $15 offer $15.1. What is the liquidation cost in normal markets?


A protection buyer purchases 6-year protection on a company at a default swap spread of 400bp. The face value of the protection is K1, 000,000 million. What is the premium payment per year assuming that payments are done monthly?