1291213123 Examine the Year-to-Year Total Return Data in the table belowCompute the annual Risk Premiums for Stocks and BondsCompute the average returns for stocks, bonds, and bills.Compute the standard deviation of returns for stocks, bonds, and billsGraph the Distribution of Total Returns for Stocks, Bonds, and BillsComplete ALL cells in Yellow4567891011 Year to Year Total ReturnsLargeLongCompany Government T-BillsStocksBonds141516171819ABD EG3. Risk and Return Calculations for Stocks, Bonds, and Bills2021223000 -1.89%3001 -11.89%3002-22.10%3003 38.68%3004 10.88%3005 14.91%3006 5.80%3007 15.49%3008 -37.00%3009 26.46%Average24 ReturnX✓ fxStandard25 Deviation263.93%21.58%22.16% 5.98%8.32% 5.33%14.23%4.61%6.51% 4.03%10.53% 3.43%10.56% 4.30%14.11% 3.97%22.56%21.78% 3.24%5.52%-25.75% 3.15%10.50% 4.36%F13.31% 0.94%Risk PremiumsLarge LongCompany GovernmentStocks Bonds50.00%40.00%30.00%20.00%10.00%0.00%-10.00%-20.00%-30.00%-40.00%-50.00%HIJ3KLMInsert Column Chart for the Distribution of Returns Here(Label the Chart and include a Legend)Return Percentage for Large Company Stocks and Long GovernmentBondsStocks BondsNsophonengs5678O10P

Here, YearLarge Company StocksLong Government BondsT-…

3. Risk and Return Calculations for Stocks, Bonds, and Bills Examine the Year-to-Year Total Return Data in the table below Compute the annual Risk Premiums for Stocks and Bonds Compute the average returns for stocks, bonds, and bills. Compute the standard deviation of returns for stocks, bonds, and bills Graph the Distribution of Total Returns for Stocks, Bonds, and Bills Complete ALL cells in Yellow Year to Year Total Returns Large Long Company Government T-Bills Stocks Bonds 3000 -1.89% 3001 -11.89% 3002 -22.10% 3003 38.68% 3004 10.88% 3005 14.91% 3006 5.80% 3007 15.49% 3008 -37.00% 3009 26.46% Average Return 3.93% Standard Deviation 21.58% 22.16% 5.98% 8.32% 5.33% 14.23% 4.61% 6.51% 4.03% 10.53% 3.43% 10.56% 4.30% 14.11% 3.97% 22.56% 5.52% 21.78% 3.24% -25.75% 3.15% 10.50% 4.36% 13.31% 0.94% Risk Premiums Large Long Company Government Stocks Bonds 50.00% 40.00% 30.00% 20.00% 10.00 % 0.00% -10.00% -20.00% -30.00% -40.00% -50.00% Return Percentage for Large Company Stocks and Long Government Bonds 1 Insert Column Chart for the Distribution of Returns Here (Label the Chart and include a Legend) 3 5 Stocks Bonds 6 7 8 10

3. Risk and Return Calculations for Stocks, Bonds, and Bills Examine the Year-to-Year Total Return Data in the table below Compute the annual Risk Premiums for Stocks and Bonds Compute the average returns for stocks, bonds, and bills. Compute the standard deviation of returns for stocks, bonds, and bills Graph the Distribution of Total Returns for Stocks, Bonds, and Bills Complete ALL cells in Yellow Year to Year Total Returns Large Long Company Government T-Bills Stocks Bonds 3000 -1.89% 3001 -11.89% 3002 -22.10% 3003 38.68% 3004 10.88% 3005 14.91% 3006 5.80% 3007 15.49% 3008 -37.00% 3009 26.46% Average Return 3.93% Standard Deviation 21.58% 22.16% 5.98% 8.32% 5.33% 14.23% 4.61% 6.51% 4.03% 10.53% 3.43% 10.56% 4.30% 14.11% 3.97% 22.56% 5.52% 21.78% 3.24% -25.75% 3.15% 10.50% 4.36% 13.31% 0.94% Risk Premiums Large Long Company Government Stocks Bonds 50.00% 40.00% 30.00% 20.00% 10.00 % 0.00% -10.00% -20.00% -30.00% -40.00% -50.00% Return Percentage for Large Company Stocks and Long Government Bonds 1 Insert Column Chart for the Distribution of Returns Here (Label the Chart and include a Legend) 3 5 Stocks Bonds 6 7 8 10

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

the following table represents the yield to maturity for 12 year t bonds and corporate bonds with different ratings what most likely accounts for differences in yields? T-Bond: 2.42% AAA Corporate Bond: 3.42% A Corporate Bond: 4.24% BBB Corporate Bond: 4.78% Differences in expected inflation. Tax effects of corporate bonds. Differences in the real and nominal risk-free rate. ODefault risk and liquidity risk. Maturity risk and liquidity risk.
Calculate the accrued interest (in $) and the total proceeds (in $) of the bond sale. (Round your answers to the nearest cent.) Company CouponRate MarketPrice TimeSince LastInterest AccruedInterest Commissionper Bond BondsSold TotalPrice Company 4 10.825% 77.00 85 days $ $11.00 15 $
Calculate the accrued interest (in $) and the total purchase price (in $) of the bond purchase. (Round your answers to the nearest cent.) Company CouponRate MarketPrice TimeSince LastInterest AccruedInterest Commissionper Bond BondsPurchased TotalPrice Company 2 9.2 79.75 23 days $ $9.95 15
Calculate the purchase price of the following bonds. Indicate whether the bonds are priced at a discount, at par or at a premium. Give your answers in dollars and cents to the nearest cent. Face Value Coupon Rate Years to Maturity Market Rate a) $100 r = 6.75% 5 j2 = 6.75% b) $1,000 r = 8% 11 j2 = 6.25% c) $10,000 r = 7% 20 j2 = 8.75% Quoted coupon rates and market rates are nominal annual rates compounded semi-annually. a)Price = $ This bond is priced at:a discountpara premium b)Price = $ This bond is priced at:a discountpara premium c)Price = $ This bond is priced at:a discountpara premium
Bhupatbhai
Describe how the annual bond valuation formula is changed toevaluate semiannual coupon bonds. Write out the revised formula.
Calculate the accrued interest (in $) and the total purchase price (in $) of the bond purchase. (Round your answers to the nearest cent.) Company CouponRate MarketPrice TimeSince LastInterest AccruedInterest Commissionper Bond BondsPurchased TotalPrice Company 2 9.2 79.75 23 days $ $9.15 15 $
Q2
The following table shows the average returns for some of the largest mutual funds commonly found in retirement plans. (Assume end-of-month deposits and withdrawals and monthly compounding, and assume that the quoted rate of return continues indefinitely.) MutualFund Fidelity Growth Company Vanguard 500 Index PIMCO Total Return Vanguard Total Bond Market Index Rate ofReturn 15.83% 14.25% 3.77% 3.67% Type Stock fund Stock fund Bond fund Bond fund For the past 15 years you have been depositing $300 per month in the PIMCO bond fund, and you have now transferred your current balance to the Vanguard bond fund, where you plan to continue depositing $300 per month until you retire in 20 years. How much can you anticipate having in the investment when you retire? HINT [See Example 1.] (Round your answer to the nearest cent.) $
The following table shows the average returns for some of the largest mutual funds commonly found in retirement plans. (Assume end-of-month deposits and withdrawals and monthly compounding, and assume that the quoted rate of return continues indefinitely.) MutualFund FidelityGrowthCompany Vanguard500 Index PIMCOTotal Return VanguardTotal BondMarket Index Rate ofReturn 15.83% 14.25% 3.77% 3.67% Type Stock fund Stock fund Bond fund Bond fund For the past 15 years you have been depositing $400 per month in the PIMCO bond fund, and you have now transferred your current balance to the Vanguard bond fund, where you plan to continue depositing $400 per month until you retire in 20 years. How much can you anticipate having in the investment when you retire? HINT [See Example 1.] (Round your answer to the nearest cent.) $
The following table shows the average returns for some of the largest mutual funds commonly found in retirement plans. (Assume end-of-month deposits and withdrawals and monthly compounding, and assume that the quoted rate of return continues indefinitely.) MutualFund FidelityGrowthCompany Vanguard500 Index PIMCOTotal Return VanguardTotal BondMarket Index Rate ofReturn 14.83% 14.25% 2.77% 2.67% Type Stock fund Stock fund Bond fund Bond fund How much would be accumulated after 35 years in a retirement account invested entirely in the Vanguard stock fund with payments of $340 per month? HINT [See Quick Example 1.] (Round your answer to the nearest cent.)

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