UNIT 2: TEXTBOOK PROBLEMS |
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CHAPTER 4: PROBLEM 2 (a thru c) |
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A. |
B. |
C. |
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Present Value | 3,200 | 3,200 | 3,200 | ||||||||||||

Interest Rate | 6% | 8% | 6% | ||||||||||||

Number of Years | 10 | 10 | 20 | ||||||||||||

Future Value = | #NAME? |
#NAME? |
#NAME? |
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CHAPTER 4: PROBLEM 3 |
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A. |
B. |
C. |
D. |
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Future Value = | 15,451 | 51,557 | 886,073 | 550,164 | |||||||||||

Interest Rate | 7% | 9% | 14% | 16% | |||||||||||

Number of Years | 12 | 8 | 19 | 24 | |||||||||||

Present Value = | #NAME? |
#NAME? |
#NAME? |
#NAME? |
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CHAPTER 4: PROBLEM 4 |
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A. |
B. |
C. |
D. |
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Present Value = | 217 | 432 | 41,000 | 54,382 | |||||||||||

Future Value | 307 | 896 | 162,181 | 483,500 | |||||||||||

Number of Years | 3 | 10 | 13 | 26 | |||||||||||

Interest Rate | #NAME? |
#NAME? |
#NAME? |
#NAME? |
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CHAPTER 4: PROBLEM 5 |
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A. |
B. |
C. |
D. |
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Present Value = | 625 | 810 | 18,400 | 21,500 | |||||||||||

Future Value | 1,284 | 4,341 | 402,662 | 173,439 | |||||||||||

Interest Rate | 9% | 11% | 7% | 10% | |||||||||||

Number of Years (or Periods) | #NAME? |
#NAME? |
#NAME? |
#NAME? |
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CHAPTER 4: PROBLEM 11 |
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Discount Rate | 5% | 13% | 18% | ||||||||||||

Year 1: | $960 | $960 | $960 | ||||||||||||

Year 2: | $840 | $840 | $840 | ||||||||||||

Year 3: | $1,935 | $1,935 | $1,935 | ||||||||||||

Year 4: | $1,350 | $1,350 | $1,350 | ||||||||||||

Present Value @ 5%, 13%, and 18% = | #NAME? |
#NAME? |
#NAME? |
(Note: Use the built-in NPV formula in Excel) | |||||||||||

CHAPTER 5: PROBLEM 2 |
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A. | |||||||||||||||

Settlement | (Think of Settlement as the beginning of the duration of the bond) | ||||||||||||||

Maturity | (Think of Maturity as the end of the duration of the bond) | ||||||||||||||

Rate | (Coupon Rate) | ||||||||||||||

YTM | (Yield to Maturity or Required Rate of Return) | ||||||||||||||

Redemption | (Bonds Face Value, Par Value, or Fair Price; Note that is $100, not $1,000. You make the adjustments by multiplying the answer by 10) | ||||||||||||||

Frequency | (Coupon payments are semiannual, so you put in a 2. If they are annual, then you input a 1) | ||||||||||||||

Basis | (Always leave it blank) | ||||||||||||||

Bond Price |
#NAME? |
(The answer. But you need to multiply it by 10 to get the actual bond price) | |||||||||||||

Multiply by 10 |
#NAME? |
(Microsoft gives the bond price in 2 digits. You need to multiply it by 10 to get the actual bond price) | |||||||||||||

CHAPTER 5: PROBLEM 3 |
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Settlement | (Think of Settlement as the beginning of the duration of the bond) | ||||||||||||||

Maturity | (Think of Maturity as the end of the duration of the bond) | ||||||||||||||

Rate | (Coupon Rate) | ||||||||||||||

Pr | (The bonds price per $100 face value) | ||||||||||||||

Redemption | (Bonds Face Value, Par Value, or Fair Price; Note that is $100, not $1,000) | ||||||||||||||

Frequency | (Coupon payments are semiannual, so you put in a 2. If they are annual, then you input a 1) | ||||||||||||||

Basis: | (Always leave it blank) | ||||||||||||||

YTM |
#NAME? |
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CHAPTER 6: PROBLEM 2 |
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Dividend Payment | $1.99 | ||||||||||||||

Dividend Growth Rate | 4.50% | ||||||||||||||

ZYX Stock Price | $31 | ||||||||||||||

Required Return = | #NAME? |
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CHAPTER 6: PROBLEM 4 |
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Dividend | $2.65 | ||||||||||||||

Dividend increase per year | 4.75% | ||||||||||||||

Required Return (Return on Investment) | 11% | ||||||||||||||

Stock Price = | #NAME? |
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Subject | Business |

Due By (Pacific Time) | 10/23/2015 12:00 pm |

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