Solutions for Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Problem 1SQ:
(PRICE) In February 2009, Treasury 8.5s of 2020 yielded 3.2976%. What was their price? If the yield...Problem 2SQ:
(YLD) On the same day, Treasury 3.5s of 2018 were priced at 107.46875%. What was their yield to...Problem 3SQ:
(DURATION) What was the duration of the Treasury 8.5s? How would duration change if the yield rose...Problem 4SQ:
(MDURATION) What was the modified duration of the Treasury 8.5s? How would modified duration differ...Problem 2PS:
Bond prices and yields The following statements are true. Explain why. a. If a bonds coupon rate is...Problem 4PS:
Bond prices and yields A 10-year German government bond (bund) has a face value of 100 and a coupon...Problem 5PS:
Bond prices and yields Construct some simple examples to illustrate your answers to the following:...Problem 6PS:
Spot interest rates and yields Which comes first in the market for U.S. Treasury bonds: a. Spot...Problem 8PS:
Spot interest rates and yields Assume annual coupons. a. What is the formula for the value of a...Problem 11PS:
Duration True or false? Explain. a. Longer-maturity bonds necessarily have longer durations. b. The...Problem 12PS:
Duration Calculate the durations and volatilities of securities A, B, and C. Their cash flows are...Problem 13PS:
Term-structure theories The one-year spot interest rate is r1 = 5% and the two-year rate is r2 = 6%....Problem 14PS:
Real interest rates The two-year interest rate is 10% and the expected annual inflation rate is 5%....Problem 15PS:
Duration Here are the prices of three bonds with 10-year maturities: If coupons are paid annually,...Problem 18PS:
Spot interest rates and yields A 6% six-year bond yields 12% and a 10% six-year bond yields 8%....Problem 19PS:
Spot interest rates and yields Is the yield on high-coupon bonds more likely to be higher than that...Problem 22PS:
Duration Find the spreadsheet for Table 3.4 in Connect. Show how duration and volatility change if...Problem 30PS:
Prices and yields If a bonds yield to maturity does not change, the return on the bond each year...Problem 32PS:
Price and spot interest rates Find the arbitrage opportunity(ies). Assume for simplicity that...Browse All Chapters of This Textbook
Chapter 1 - Introduction To Corporate FinanceChapter 1.A - Why Maximizing Shareholder Value Makes SenseChapter 2 - How To Calculate Present ValuesChapter 3 - Valuing BondsChapter 4 - The Value Of Common StocksChapter 5 - Net Present Value And Other Investment CriteriaChapter 6 - Making Investment Decisions With The Net Present Value RuleChapter 7 - Introduction To Risk And ReturnChapter 8 - Portfolio Theory And The Capital Asset Pricing ModelChapter 9 - Risk And The Cost Of Capital
Chapter 10 - Project AnalysisChapter 11 - Investment, Strategy, And Economic RentsChapter 12 - Agency Problems, Compensation, And Performance MeasurementChapter 13 - Efficient Markets And Behavioral FinanceChapter 14 - An Overview Of Corporate FinancingChapter 15 - How Corporations Issue SecuritiesChapter 16 - Payout PolicyChapter 17 - Does Debt Policy Matter?Chapter 18 - How Much Should A Corporation Borrow?Chapter 19 - Financing And ValuationChapter 19.A - Discounting Safe, Nominal Cash FlowsChapter 20 - Understanding OptionsChapter 21 - Valuing OptionsChapter 22 - Real OptionsChapter 23 - Credit Risk And The Value Of Corporate DebtChapter 24 - The Many Different Kinds Of DebtChapter 25 - LeasingChapter 26 - Managing RiskChapter 27 - Managing International RisksChapter 28 - Financial AnalysisChapter 29 - Financial PlanningChapter 30 - Working Capital ManagementChapter 31 - MergersChapter 32 - Corporate RestructuringChapter 33 - Governance And Corporate Control Around The World
Book Details
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Sample Solutions for this Textbook
We offer sample solutions for Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate) homework problems. See examples below:
Chapter 1, Problem 1PSChapter 2, Problem 1SQDetermine the one year interest rate One Year Interest Rate=[(1Discount...Determine the present value at the end of each year Present Value=[Amount of InvestmentInterest...Chapter 2, Problem 27PSChapter 3, Problem 1SQComputation of discount factors for each year is as follows: Formula to compute of discount factors...Chapter 3, Problem 30PSChapter 3, Problem 34PS
Chapter 4, Problem 1PSChapter 4, Problem 18PSChapter 4, Problem 28PSChapter 5, Problem 1SQChapter 6, Problem 1PSChapter 7, Problem 1PSChapter 7, Problem 2PSChapter 8, Problem 1PSChapter 9, Problem 1SQChapter 10, Problem 1PSChapter 11, Problem 1PSChapter 11, Problem 19PSThe false option is as follows: Stock options offer managers the right (but not the obligation) to...The correct option as follows: Differ by a random number: The price changes are not dependent of one...Chapter 14, Problem 1PSGiven information: For rights issue – initial public offering or further sale of an already publicly...Following are appropriates matched with respective events: DateEventFriday, July 25Declaration...Chapter 16, Problem 20PSThe marginal investors who determine the prices of the stocks are institutions.Chapter 17, Problem 1PSThe PV calculation assumes that the debt is fixed and perpetual, rate of tax is fixed, the personal...Chapter 18, Problem 14PSCalculate market value of equity and debt: Equity=Selling price×Number of shares=$42×2.5...Chapter 20, Problem 1PSGiven information: Company H stock prices changes once in a month either by increase in 20% or...Calculation of value of option:...The stock beta of Company G’s stock is 1.28.Chapter 22, Problem 1PSDetermine the present value of payoffs Excel Spreadsheet: Present Value of Payoffs=[PayoffsYear...Chapter 23, Problem 1PSChapter 24, Problem 1PSChapter 25, Problem 1PSChapter 26, Problem 1PSThe formula to calculate duration of securities is as follows: Duration = ( 1V){[PV(C1)](1) +...Chapter 26, Problem 24PSChapter 27, Problem 1PSThe balance sheet of company G is as follows: The formula to calculate shareholders equity is:...Given information: Long term debt ratio is 0.4 Times-interest earned is 8.0 Current ratio is 1.4...Computation of cash cycle is as follows: Therefore, the cash cycle of the company E is 137 days.Chapter 30, Problem 1PSWhether the given hypothetical mergers vertical, horizontal and conglomerate:Chapter 32, Problem 1PSThe Country K has the largest stock market in the world. The Country K stock market is larger as a...
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Principles of Corporate Finance, Concise
2nd Edition
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PRIN.OF CORPORATE FINANCE-CONNECT
14th Edition
ISBN: 9781266028168
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14th Edition
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14th Edition
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10th Edition
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8th Edition
ISBN: 9780072957310
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8th Edition
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4th Edition
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3rd Edition
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1st Edition
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