固定收益证券作业1

1、固定收益证券作业 11. The amount an investor will have in 15 years if $1,000 is invested today at an annual interest rate of 9% will be closesto:A. $1,350.B. $3,518.C. $3,642.2. Fifty years ago, an investor bought a share of stock for $10T.he stock has paid no dividends during this period, yet it has returne

2、d 20%, compounded annually, over the past 50 yeaIrsf .this is true, the share price is nowclosestto:A. $4,550.B. $45,502.C. $91,004.3. How much must be invested today at 0% to have $100 in three years?A. $77.75.B. $100.00.C. $126.30.4. How much must be invested today, at 8% interest, to accumulate e

3、nough to retire a $10,000 debt due seven years from today?T he amount that must be invested today isclosestto:A. $5,835.B. $6,123.C. $8,794.5. An analyst estimates that XYZs earnings will grow from $3.00 a share to $4.50 per share 精品over the next eight years.精品s ecalornsiensgtstoi:sThe rate of growt

4、h in XYZA. 4.9%.B. 5.2%.C. 6.7%.6. If $5,000 is invested in a fund offering a rate of return of 12% per year, approximately how many years will it take for the investment to reach $10,000?A. 4 years.B. 5 years.C. 6 years.7. An investment is expected to produce the cash flows of $500, $200, and $800

5、at the end of the next three years.I f the required rate of return is 12%, the present value of this investment is closestto:A. $835.B. $1,175.C. $1,235.8. Give n an 8.5% disco unt rate, an asset that gen erates cash flows of $10 in yea-1$ 20 in year2, $10 in year 3, and is then sold for $150 at the

6、 end of year 4, has a present value of:A. $108.29.B. $135.58.C. $163.42.9. An investor has just won the lottery and will receive $50,000 per year at the end of each of the next 20 years.At a 10% interest rate, the present value of the winnings icslosestto:A. $425,678.B. $637,241.C. $2,863,750.10. If

7、 $10,000 is invested today in an account that earns interest at a rate of 9.5%, what is the value of the equal withdrawals that can be taken out of the account at the end of each of the next five years if the investor plans to deplete the account at the end of the time period?A. $2,453.B. $2,604.C.

8、$2,750.11. An investor is to receive a 15-year $8,000 annuity, the first payment to be received todaAyt.an 11% discount rate, this annuityh todayis cslowsoerst to:A. $55,855.B. $57,527.C. $63,855.12. Given an 11% rate of return, the amount that must be put into an investment account at theend of eac

9、h of the next ten years in order to accumulate $60,000 to pay for a childis closestto:A. $2,500.B. $3,588.C. $4,432.13. An investor will receive an annuity of $4,000 a year for ten yearTs.he first payment is to be received five years from today.At a 9% discount rate, this annuityclsowseosr tho:today

10、 isA. $16,684.B. $18,186.C. $25,671.14. If $1,000 is invested today and $1,000 is invested at the beginning of each of the next three years at 12% interest (compounded annually), the amount an investor will have at the end of the fourth year will be closes to:A. $4,779.B. $5,353.C. $6,792.15. An inv

11、estor is looking at a $150,000 homeI.f 20% must be put down and the balance isfinanced at 9% over the next 30 years, what is the monthly mortgage payment?A. $799.33.B. $895.21.C. $965.55.16. Given daily compounding, the growth of $5,000 invested for one year at 12% interest will be closestto:A. $5,6

12、00.B. $5,628.C. $5,637.17. Terry Corporation preferred stocks are expected to pay a $9 annual dividend foreveIrf.the required rate of return on equivalent investments is 11%, a share of Terry preferred should be worth:A. $81.82.B. $99.00.C. $122.22.18. Ashare of GeorgeCo. preferred stock is selling

13、for $65.I t pays a dividend of $4.50 per year and has a perpetual lifeT. he rate of return it is offering its investors is closesto:A. 4.5%.B. 6.9%.C. 14.4%.19. If $10,000 is borrowed at 10% interest to be paid back over ten years, how much of the second year s payment is interest (assume annual loa

14、n payments)?A. $937.26.B. $954.25.C. $1,037.26.20. What is the effective annual rate for a credit card that charges 18% compounded monthly?A. 15.38%.B. 18.81%.C. 19.56%.分析题1. The Parks plan to take three cruises, one each yeaTrh. ey will take their first cruise 9 years from today, the second cruise

15、one year after that, and the third cruise 11 years from todaTyh.e type of cruise they will take currently costs $5,000, but they expect inflation will increase this cost by3.5% per year on average.They will contribute to an account to save for these cruises that will earn 8% per year. What equal con

16、tributions must they make today and every year until their first cruise (ten contributions) in order to have saved enough for all three cruises at that timeT?hey pay for cruises when taken.2. Acompany s dividend in 199w5 as $0.88.Over the next eight years, the dividends were $0.91, $0.99, $1.12, $0.

17、95, $1.09, $1.25, $1.42, $1.26. Calculate the annually compounded growth rate of the dividend over the whole period.3. An investment (a bond) will pay $1,500 at the end of each year for 25 years and on the date of the last payment will also make a separate payment of $40,000. If your required rate o

18、f return on this investment is 4%, how much would you be willing to pay for the bond today?4. Abank quotes certificate of deposit C( D) yields both as annual percentage ratesA(PR) without compounding and as annual percentage yieldsA P( Y) that include the effects of monthly compounding. A $100,000CD

19、 will pay $110,471.31 at the end of the yeaCr. alculate theAPRand APY the bank is quoting.5. Aclient has $202,971.39 in an account that earns 8% per year, compounded monthTlyh.e client s 35th birthday was yesterday and she will retire when the account value is $1 million.A. At what age can she retir

20、e if she puts no more money in the account?B. At what age can she retire if she puts $250/month into the account every month beginning one month from today?6. At retirement nine years from now, a client will have the option of receiving a lump sum of 400,000 or 20 annual payments ofwith thefi4 ,000m

21、ent made at retirement. What isthe annual rate the client would need to earn on a retirement investment to be indifferent between the two choices?Use the following data to answer Questions 1 and 1Assume an investor purchases a share of stock for $50 at time t = 0, and another share at $65 at time t

22、= 1, and at the end of year 1 and year 2, the stock paid a $2.00 dividend. Also, at the end of year 2, the investor sold both shares for $70 each.1. The money-weighted rate of return on the investment is:A. 15.45%.B. 16.73%.C. 18.02%.2. The time-weighted rate of return on the investment is:A. 18.27%

23、.B. 20.13%.C. 21.83%.3 What is the bank discount yield for aT-bill that is selling for $99,000, with a face value of $100,000, and 95 days remaining until maturity?A. 1.51%.B. 3.79%.C. 6.00%.4. What is the holding period yield for aT-bill that is selling for $99,000 if it has a face value of $100,00

24、0 and 95 days remaining until maturity?A. 1.01%.B. 2.03%.C. 3.79%.5. What is the effective annual yield for aT-bill that is selling for $99,000 if it has a face value of$100,000 and 95 days remaining until maturity?A. 3.79%.B. 3.94%.C. 4.50%.6. What is the money market yield for aT-bill that is sell

25、ing for $99,000 if it has a face value of$100,000 and 95 days remaining until maturity?A. 3.79%.B. 3.83%.C. 3.90%.7. Which of the following is least accuratreegarding a bank discount yield?A. It ignores the opportunity to earn compound interest.B. It is based on the face value of the bond, not its p

26、urchase price.C. It reflects the nonannualized return an investor will earn over a security s8. A 175-dayT-bill has an effective annual yield of 3.80%I. ts money-market yield isclosesto:A. 1.80%.B. 3.65%.C. 3.71%.1. A A llison Rogers,CFACFA , makes the following statement: The problems“with bankdisc

27、ount yields quoted for T-bills is that they aren t yields, they ignore compounding, and theyare based on a short year.”A. I Is she correct in all regards?B. Which of these problems is/are remedied by using the holding period yield?C. Which of these problems is/are remedied by using a money market yield?D. Which of these problems is/are remedied by using effective annual yields?2. L. Adams