ABC Company offers to sell you a bond for $613.91. No payments will be made until the bond matures 10 years from now, at which time it will be redeemed for $1,000. What interest rate would you earn if you bought this bond at the offer price? a. 6.71% b. 5.91%
1.ABC Company offers to sell you a bond for $613.91. No payments will be made until the bond matures 10 years from now, at which time it will be redeemed for $1,000. What interest rate would you earn if you bought this bond at the offer price?
a. 6.71%
b. 5.91%
c. 5.59%
d. 5.00%
2.At a rate of 8%, what is the
a.$ 717.31
b.$788.32
c. $625.54
d. $701.15
3. ABC company has received a $50,000 loan from a bank. The annual payments are $6,202.70. If the company is paying 9% interest per year, how many loan payments must the company make?
a. 12
b. 19
c. 15
d. 13
4. ABC Company has 100,000 unit of common stock outstanding, its net income is $750,000, and its P/E ratio is 8. What is the company’s stock price?
a. $40.00
b. $20.00
c. $60.00
d. $30.00
5. ABC company 2005 sales were $100 million. If sales grow at 8% per year, how much would it be in 10 years later (in millions)?
a. $201.15
b. $190.49
c. $215.89
d. $225.54
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