XYZ stock price and dividend history are as follows:

An investor buys four shares of XYZ at the beginning of 2015, buys another two shares at the beginning of 2016, sells one share at the beginning of 2017, and sells all five remaining shares at the beginning of 2018.

a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2015, to January 1, 2018.

A firm has projected free cash flows of $175,000 for Year 1, $200,000 for Year 2, and 225,000 for Year 3, $250,000 for Year 4, and 300,000 for Year 5. The projected terminal value at the end of Year 5 is $600,000. The firm's Weighted Average cost of Capital (WACC) is 10.5%.

Microsoft® Excel® document to determine the Discounted Cash Flow (DCF) value of the firm based on the information provided above. Show calculations.

My pension plan will pay me $18,500 once a year for a 10-year period. The first payment will come in exactly five years. The pension fund wants to immunize its position.

a. What is the duration of its obligation to me? The current interest rate is 13.5% per year.

b. If the plan uses 5-year and 20-year zero-coupon bonds to construct the immunized position, how much money ought to be placed in each bond?

c. What will be the face value of the holdings in each zero?

Find the present value of receiving $1000 per year for ten years beginning in year 12 until year 21, assuming an interest rate of 9%.

1 year Treasury rates are 1%, while 2 year Treasury rates are 7%. What is the expected 1 year Treasury rate one year from today?

A project has expected cash flows of $55 next year (year 1). These cash flows will grow at 6% per year through year 6. Growth from year 6 to 7 will be -2%, and this negative growth will continue in perpetuity. Assume a discount rate of 8%. What is the present value today (year 0) of these cash flows? DO BY HAND

1 year Treasury rates are 2%, while 2 year Treasury rates are 6%. What is the expected 1 year Treasury rate one year from today?

Suppose that the yield curve shows that the one-year bond yield is 6 percent, the two-year yield is 5 percent, and the three-year yield is 5 percent. Assume that the risk premium on the one-year bond is zero, the risk premium on the two-year bond is 1 percent, and the risk premium on the three-year bond is 2 percent.

a. What are the expected one-year interest rates next year and the following year?

The expected one-year interest rate next year = %

The expected one-year interest rate the following year = %

A closed-end fund starts the year with a NAV of $12.55. By year-end, NAV equals $11.36. At the beginning of the year, the fund was selling at a 5% discount to NAV. By the end of the year, the fund is selling at a 1% premium to NAV. The fund paid year-end distributions of income and capital gains of $1.21. What is the rate of return to an investor in the fund during the year?

Round your answer to 4 decimal places. For example, if your answer is 3.205%, then please write down 0.0321.

1) The yield on a one-year Treasury security is 5.8400%, and the two-year Treasury security has a 7.0080% yield. Assuming that the pure expectations theory is correct, what is the market’s estimate of the one-year Treasury rate one year from now? (Note: Do not round your intermediate calculations.)

A. 10.3999%

B. 8.1889%

C.6.9606%

D. 9.3353%

2) Recall that on a one-year Treasury security the yield is 5.8400% and 7.0080% on a two-year Treasury security. Suppose the one-year security does not have a maturity risk premium, but the two-year security does and it is 0.2%. What is the market’s estimate of the one-year Treasury rate one year from now? (Note: Do not round your intermediate calculations.)

A. 7.7849%

B. 8.8748%

C. 6.6172%

D. 9.8868%

3) Suppose the yield on a two-year Treasury security is 5.83%, and the yield on a five-year Treasury security is 6.20%. Assuming that the pure expectations theory is correct, what is the market’s estimate of the three-year Treasury rate two years from now? (Note: Do not round your intermediate calculations.)

A. 6.69%

B. 6.53%

C. 6.45%

D. 7.10%