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- Explaining the riskiness of each bond Issuer Face Value Coupon Rate Rating Quoted Price Years until Maturity Sinking Fund Call Period Nominal YTM Effective YTM Ranking 4= highest ABC Energy $1,000 5% AAA $703.10 20 Yes 3 8.0001% 8.1601% 1 ABC Energy $1,000 0% AAA $208.30 20 Yes NA 7.9997% 8.1597% 2 TransPower $1,000 10% AA $1,092 20 Yes 5 9.0001% 9.2026% 3 Telco Utilities $1,000 11% AA $1,206.40 30 No 5 8.9998% 9.2023% 4 Question: Make an analysis based on the table given below. Also, explain thoroughly why we need to rank and explain the riskiness of each bond.The common stock of XYZ paid $1.32 in dividends last year. Dividends are expected to grow at an 8% annual rate for an indefinite number of years. If the require rate of return is 10.5%, should you make this investment? Why?A 12 percent semiannual coupon bond matures in 9 years. The bond has a face value of $1,000 and a current yield (CY) of 11.62 percent. What is the bond’s yield to maturity (YTM)? how would I calculate in a BA II PLUS FINANCIAL CALCULATOR. 4
- A stock had returns of 14 percent, 17 percent, 14 percent, 20 percent, 16 percent, and 2 percent over the last six years. What is the arithmetic return for the stock? Arithmetic return What is the geometric return for the stock? Geometric returnSuppose that on January, 1, 2022, you purchased a coupon bond with the following characteristics: • Face value: $1,000 • Coupon rate: 8 3/4 • Current yield: 7% • Maturity date: 2024 If the bond is selling for $900 on January 1, 2023, then the rate of return on this bond during the holding period of calendar year 2022 was Include minus sign to indicate a negative change, but do not include a plus sign for a positive change.) %. (Round your response to three decimal places.Sabrine purchased 4,500 shares of a mutual fund at an offer price of $8.88 per share. Later, she sold the investment for $7.38 per share. During the time she owned the shares, the fund paid a dividend of $0.52 per share. What was her return on her investment? (Round to the nearest tenth.)
- Many retirement funds charge an administrative fee equal to 0.25% on managed assets. Suppose that Alexx and Spenser each invest $4,000 in the same stock this year. Alexx invests directly and earns 4% a year. Spenser uses a retirement fund and eams 3.75%. If Alexx and Spenser leave their investments in place for 30 years, with annual compounding of the interest, how much more will Alexx have than Spenser at the end of the 30-year period? Alexx will have more than Spenser after 30 years. (Enter your response rounded to two decimal places.)to be valid, a trust must have a trustor, a trustee, at least one beneficiary, and a lawful trust purpose, True or False?Exhibit 1-A Future value (compounded sum) of $1 after a given number of time periods Period 5% 1.050 1% 1.010 1.020 1.030 2% 1.020 1.040 1.061 4% 1.040 6% 1.060 1.124 3% 7% 8% 9% 10% 11% 1.030 1.061 1.093 1.126 1.159 1.090 1.188 1.295 1.412 1.539 1.677 1.828 1.080 1.166 1 1.070 1.100 1.110 1.145 1.210 1.331 1.232 1.368 1.082 1.103 1.158 1.216 1.276 3 1.125 1.191 1.225 1.260 1.170 1.217 1.262 1.338 1.041 1.082 1.311 1.360 1.464 1.518 1.051 1.403 1.104 1.126 1.149 1.469 1.611 1.772 1.949 1.685 1.870 2.076 2.305 2.558 6. 1.062 1.194 1.265 1.340 1.419 1.501 1.587 1.072 1.230 1.316 1.407 1.504 1.606 1.714 8 1.083 1.172 1.267 1.369 1.477 1.594 1.718 1.851 1.993 2.144 1.094 1.105 1.116 1.195 1.219 1.243 2.172 2.367 2.580 2.813 3.066 3.342 3.642 3.970 4.328 4.717 5.142 5.604 8.623 2.358 2.594 2.853 3.138 3.452 1.305 1.423 1.551 1.689 1.838 1.999 1.344 1.629 1.710 10 1.480 1.791 1.967 2.159 2.839 11 1.539 2.105 2.332 2.518 2.720 2.937 3.172 3.426 3.700 3.996 4.316 1.384 1.898 3.152 12 1.127…
- A bond that is currently selling at $1,000 offers to pay $50 annually. What is the percentage rate of return on the bond? Multiple Choice 5 percent 10 percent 20 percent 50 percentRoadside Markets has a 7.0 percent coupon bond outstanding that matures in 20 years. The bond pays interest semiannually. What is the market price per bond if the face value is $1,000 and the yield to maturity is 6.0 percent? $993.77 $1,059.83 $1,171.57 $1,000.98 $1,115.57