you have purchased a 10 year zero coupon bond with a yield to maturity of 10% and a par of 1000. What would the rate of return at the end of the year be if you sell the bond when yields have fallen by 1%

common stock has a beta of 1. if the risk free rate is 4.71 percent and the expexted return on the market is 12.39 percent what is the companys cost of equity capital.

Suppose you are 45 and have a $410,000 face amount, 15-year, limited-payment, participating policy (dividends will be used to build up the cash value of the policy). Your annual premium is $1,435. The cash value of the policy is expected to be $16,400 in 15 years. Using time value of money and assuming you could invest your money elsewhere for a 7 percent annual yield, calculate the net cost of insurance. Use (Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, Exhibit 1-D)

Anna bought a bond with a par value of $10,000 and a coupon rate of 8% at par. After a year, she was able to sell her bond for $11,000. Calculate the rate of return on Anna’s investment. What is the current yield and capital gain on her investment?

Find the total number of compounding periods and the interest rate per period for the investment. Term ofInvestment Nominal(Annual) Rate (%) InterestCompounded CompoundingPeriods Rate perPeriod (%) 6 years 4 quarterly    %

Suppose you own a mutual fund which has 17,000,000 shares outstanding. If its total assets are $38,000,000 and its liabilities are $7,000,000, find the net asset value (in $) of the fund. Round to the nearest cent. $

You have just received a business valuation report that is dated six months ago. Describe the factors that might have changed during the past six months and, therefore, caused the value of the business today to be different from the value six months ago. Which of these changes affect the expected cash flows, and which affect the discount rate that you would use in a discounted cash flow valuation of this company?

Explain, why doesn't an estimated absolute covariance number tell the investor much about the relationship between the returns on the two assets.

Originally attributed to A Tribe Called Quest, American rapper MeekMill has stated “Scared money don’t make no money”. How does this reflectthe idea of the risk premium in investment?

Analyse the interest rate risk of the following securities, and rank them from lowest risk to highest risk. Justify your ranking. (i) (ii) (iii) (iv) 270-day Treasury Bill Government treasury 30-year zero coupon bond 180-day commercial paper 10-year 5% coupon bond with "B" rating