Financial Math Answers

A Php1,000, 9.5% MWDR Inc. bond has a semi-annual coupon rate of 15%. This matures after 6 years and the required rate of return is 8%. Find the bond price.

You purchase a Php1,000 coupon band. The coupon rate on the bond is 4%. What is the coupon payment?

A company declares that next year's dividend will be Php1 per share. Everyone holding 100 shares will receive Php25 once per quarter. Find the dividend yield.

Ryza borrows Php150,000. At what rate compounded bi-monthly will her interest be if she agrees to pay Php10,000 more at the end of 2 years?

If money is worth 6% compounded bi-monthly, find the present value of Php125,700 for 2 years.

If interest rate is unknown, give the formula for annual interest rate, j.

What is the present value of Php65,000 at 11% compounded annually for 4 years?

John and Jane are in partnership sharing profits and losses in the ratio 3:1. Interest is allowed at 5% on their capital balances and interest on drawings is charged as follows; John Tshs.120,000; Jane Tshs.130,000. The partnership agreement provides salaries to partners for the whole year as follows; John Tshs.1,200,000; Jane Tshs. 960,000. The trial balance as at 30^th June, 2017 is as shown below;

You are provided with the following information taken from the books of    Mackenzie manufacturing company (MMC) for the month ending 31^st        December, 2017.

Consider the following scenario analysis:

Rate of Return

Probability Stocks Bonds

Recession 0.20 -5% 14%

Normal 0.60 15% 8%

Boom 0.20 25% 4%

a. Calculate the expected rate of return and standard deviation for each investment.

b. Calculate coefficient of variance of each investment

c. Which investment would you prefer based on standard deviation and CV?