Last year Carson Industries issued a 10-year, 15% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,075 and it sells for $1,270. What is the bond's nominal yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places. 10.56 % What is the bond's nominal yield to call? Do not round intermediate calculations. Round your answer to two decimal places. 9.88 % Would an investor be more likely to earn the YTM or the YTC? What is the current yield? (Hint: Refer to Footnote 7 for the definition of the current yield and to Table 7.1.) Round your answer to two decimal places. 11.81 % Is this yield affected by whether the bond is likely to be called? If the bond is called, the current yield will remain the same but the capital gains yield will be different. If the bond is called, the current yield and the capital gains yield will remain the same. If the bond is called, the capital gains yield will remain the same but the current yield will be different. If the bond is called, the current yield and the capital gains yield will both be different. If the bond is called, the current yield and the capital gains yield will remain the same but the coupon rate will be different. What is the expected capital gains (or loss) yield for the coming year? Use amounts calculated in above requirements for calcuation, if reqired. Round your answer to two decimal places. Enter a loss percentage, if any, with a minus sign. -1.25 % Is this yield dependent on whether the bond is expected to be called? If the bond is not expected to be called, the appropriate expected total return is the YTC. If the bond is expected to be called, the appropriate expected total return will not change. The expected capital gains (or loss) yield for the coming year depends on whether or not the bond is expected to be called. The expected capital gains (or loss) yield for the coming year does not depend on whether or not the bond is expected to be called. If the bond is expected to be called, the appropriate expected total return is the YTM.

QUESTION 1

Last year, you purchased a 5-year bond, pays semiannually, and has a coupon rate of 6%. If the yield in the market is currently 5%, calculate the price of the bond today.

QUESTION 2

A bond will mature in 10 years, has a YTM of 6.5%, and makes annual payments. If the bond price is $1104 today, what is the coupon rate?

QUESTION 3

A bond will mature in 10 years, has a YTM of 6.5%, and makes semiannual payments. If the bond price is $1104 today, what is the coupon rate?

QUESTION 4

A zero coupon bond will mature in 8 years and has a yield of 7%. If this bond pays annually, what is the price of this bond?

QUESTION 5

Calculate the price of this bond: Yield = 5.55%, Time to maturity = 7 years, Coupon rate = 4.6%, Pays = annually.

Your friends suggest that you take a 15-year mortgage, because a 30-year mortgage is too long and you will pay a lot of money on interest. If your bank approves a 15-year, $700,000 loan at a fixed nominal interest rate of 12% (APR), then the difference in the monthly payment of the 15-year mortgage and 30-year mortgage will be   ?(Note: Round the final value of any interest rate used to four decimal places. )

It is likely that you won’t like the prospect of paying more money each month, but if you do take out a 15-year mortgage, you will make far fewer payments and will pay a lot less in interest. How much more total interest will you pay over the life of the loan if you take out a 30-year mortgage instead of a 15-year mortgage?

$1,490,250.96

$1,274,272.56

$1,079,892.00

$1,382,261.76

A​ 2-year Treasury bill currently offers a

22​%

rate of return. A​ 3-year Treasury note offers a

44​%

rate of return. Under the expectations​ theory, what rate of return do investors expect a​ 1-year Treasury bill to pay 2 year from​ now?

The rate of return investors expect a​ 1-year Treasury bill to pay 2 years from now is

Cash flow series

Determine the expected present worth of the following cash flow series if each series may be realized with the probability shown at the head of each column. Let i = 20% per year.

The present worth when the probability is 0.3 is $

The present worth when the probability is 0.22 is $

The present worth when the probability is 0.48 is $

The expected present worth value is $  .

Forten Company, a merchandiser, recently completed its calendar-year 2017 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company’s income statement and balance sheets follow.

On January 1, Year 1, Sayers Company issued $273,000 of five-year, 5 percent bonds at 102. Interest is payable semiannually on June 30 and December 31. The premium is amortized using the straight-line method.

Required
Prepare the journal entries to record the bond transactions for Year 1 and Year 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the interest expenses and amortization for bonds payable.

Jun 30 same chart

Record the interest expenses and amortization for bonds payable.

Dec 31

• Record the interest expenses and amortization for bonds payable.

JUN 30

Record the interest expenses and amortization for bonds payable.

Dec 31

4-Karl, his wife, and five year old son were completing a three year assignment in Brazil and were scheduled to return to Germany in a month. Karl would return to work at the home office in Hamburg. Question: What should Karl and his family do to lessen the shock of returning to their home culture?

Historically, the one-year returns follow approximately the normal distribution. The one-year return for the S&P 500 was +27% (that is, 0.27) and its standard deviation is 20% (that is, 0.2). What is the probability that a stock in the S&P 500 gained 30% or more last year?

(a) 0.0668 (i.e., 6.68%)
(b) 0.4404 (i.e., 44.04%)
(c) 0.5596 (i.e., 55.96%)
(d) 0.9332 (i.e., 93.32%)

What is the probability that a stock in the S&P 500 lost 10% or more last year?

(a) 0.1814 (i.e., 18.14%)
(b) 0.0082 (i.e., 0.82%)
(c) 0.0322 (i.e., 3.22%)
(d) 0.0743 (i.e., 7.43%)

One year ago, XYZ Co. issued 18-year bonds at par. The bonds have a coupon rate of 5.82 percent, paid semiannually, and a face value of $1,000. Today, the market yield on these bonds is 7.51 percent. What is the percentage change in the bond price over the past year? Answer to two decimals