Bus 405 Principles of Investment Complete Class

Answer the questions. When you are finished, submit this test to your teacher by the due date for full credit.

Describe what you did. This does not mean that you copy and paste from what you have posted or the assignments you have prepared. You need to describe what you did and how you did it.

Describe what you did. This does not mean that you copy and paste from what you have posted or the assignments you have prepared. You need to describe what you did and how you did it.

Answer the following questions for your homework. Work on the questions after we have covered the topic in class. Bring any questions to class or office hours. These questions will help you on the exam. If you do not do them, the points will add up and hurt your grade.

3. (TCO 3) Fanta Cola has $1,000 par value bonds outstanding at 12 percent interest. The bonds mature in 25 years. What is the current price of the bond if the YTM is 11 percent? Assume annual payments.

1. Describe what you did. This does not mean that you copy and paste from what you have posted or the assignments you have prepared. You need to describe what you did and how you did it.

Answer the questions below. When you are finished, turn in your assignment for grading. Use complete sentences and answer each part of the assignment.

Describe what you did. This does not mean that you copy and paste from what you have posted or the assignments you have prepared. You need to describe what you did and how you did it.

1. Describe what you did. This does not mean that you copy and paste from what you have posted or the assignments you have prepared. You need to describe what you did and how you did it.

Directions: Answer each question completely. Please be sure to answer the question at hand and answer it completely. This is an independent test. While you may use your textbooks and notes every written answer should be in your own words. Cheating will not be tolerated. If you have messy handwriting you should either skip lines (on looseleaf) or type up answers and staple them to this document.

Yield to Maturity, the book yield or redemption yield of a bond or other fixed-interest securities, is the internal rate of return an investor will earn when he purchases the bond today at the market price, provided that the bond is held until maturity and that all coupon and principal payments are made on schedule. (Fabozzi, 2007) Taking into account the clean price of some of the securities and using the YTM formula in Excel, YTM of various on-the-run Treasury bonds are obtained.

In 1965, Pepsi Co was created through a merger of two companies Pepsi Cola and Frito Lay by Donald M. Kendall, President and Chief Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay. Pepsi was originally founded in 1898 by Caleb Bradham, a New Bern, North Carolina, druggist, who first formulated Pepsi-Cola. Today, Pepsi is part of a portfolio of drinks that includes carbonated and non-carbonated drinks such as soft drinks, juices and juice drinks, ready-to-drink teas and coffee drinks, isotonic sports drinks, bottled water and enhanced waters. PepsiCo operates in four major fields. These fields include: PepsiCo Americas Beverages, PepsiCo Americas

The options that I bought were Ford Motor Co (F1629D12) and Alcoa Inc. (AA1606E9). I only bought 20 and 10 quantities separately. F1629D12 is a 2016 Apr 29 12.00 call for ford motor Co. its company produce the automobiles, like cars and trucks. The last sale is $1.68, I think it will increase in future, so I wrote it at a higher price. AA16006E9 is 2016 May 06 9.00 Call for Alcoa Inc. Its company is about the basic materials, they supply the manufacturing & engineering lightweight metals (stocktrak.com). The last sale is $1.61, and I also wrote it at a higher price. I just spent a little amount money on it, it is something new for me, and I think the car industry and Metals & Mining industry would be stable, it may not make big changes during the trade, I do not want to lose money on opinions.

6-2 What is the term structure of interest rates, and how is it related to the yield curve?

term of the bonds, the borrowing rate in each period should be the same. The effective-interest