Find the APR using the formula APR= 2nr/n+1 when n= 38 and r= 8%

Q: What is a capital budgeting technique that generates decision rules and associated metrics for…

A: The capital budgeting technique help to evaluate the acceptibility and rejection of a particular…

Q: What is meant by a preferred stock?

A: Stocks refer to the concept which is defined as the security that represents the ownership of the…

Q: rate mortgage is 3.49%. Det the montmy payment period. a. $1945.30 b. $1555.01 c. $7082.22 d.…

A: Mortgage amount loans are paid by equal monthly payments that carry the payment of interest payments…

Q: Estimate the annual percent rate for the add on loan Using the given number of payments and annual…

A: As per the information provided:  N = 48 R = 8% To determine: We have to estimate the annual…

Q: You own a convertible corporate bond that has a par value of R1000. You are considering exercising…

A: Conversion Value - It is the value of converting the old security with the new security, it can be…

Q: Suppose you buy a Merck put for $2.50 which matures in September with a strike price of $50. Merck…

A: Return on put option is calculated as follows  (Strike price - Current price) - Purchase cost of put…

Q: A share makes dividend payments at the end of every 3 months. The first pa the payments increase by…

A: The present value would be the equivalent payment today that would be based on annual rate and…

Q: Edmonds Corporation's sales are expected to increase by 10% from $4.75 million in 2016 to 5.225$…

A: Increase in sales - 10% Sales in 2016 - $4.75 million Sales in 2017 - $5.225 million Total assets -…

Q: Investor Matt has $659,000 to invest in a CD and a mutual Fund. The CD yields 6.7% and the mutual…

A: As per the information provided : Amount to be invested by Investor Matt - $659,000 CD yield - 6.7%…

Q: Your Investment Advisor faxed you the following information for a semi-annual coupon bond that he…

A: Bonds are debt instruments. The issuing entity has to pay periodic interest to the bond holders.

Q: A new car is going to cost the buyer R209 169,00. The buyer intends to make a down payment of R23…

A: Solution:- When a loan is taken, it can either be repaid as a lump sum payment or in installments.…

Q: he yield-to-maturity of a typical corporate bond, relative to a US Treasury bond with the same…

A: Corporate Bond: It is a debt security issued by the company to raise capital from the investors.…

Q: What is the (exact) nominal return on an investment that earns a real return of 14.7% while…

A: Solution:- Nominal rate of return means the rate of return inclusive the effect of inflation.

Q: For what time the capital of € 2700 with 5% interest rate and continuous capitalization increases…

A: We have; Interest rate as 5% Compounded Continuously Present Value or initial capital as € 2700…

Q: Becky Martinez owns stock in GBX Corporation. The GBX stock has a current market value of $70 a…

A: The following information has been provided in the question: Current market value of GBX stock =$70…

Q: The construction market is suffering from a short-term economic recession, and one of the investors…

A: NPV is the one of the method in Capital budgeting for help in taking the decision on the basis of…

Q: Complete the following using compound future value. Do not round intermediate calculations. Round…

A: Solution:- When an amount is deposited, it earns interest on it. The amount initially deposited is…

Q: Compute the discounted payback statistic for Project C if the appropriate cost of capital is 6…

A: Discounted Payback Period Discounted payback period refers to the method of calculating the years…

Q: What is the Maturity risk premium of a bond that matures in 8 years? answer in % without the symbol

A: Maturity Risk Premium: It represents the extra return demanded by an investor for bearing the risk…

Q: JaiLai Cos. stock has a beta of 0.6, the current risk-free rate is 6.0 percent, and the expected…

A: The following information has ben provided in the question: Beta =0.6 Risk free rate =6% Expected…

Q: Investor A buys a 20 year, 5% annual coupon bond, with an YTM = 6,5%, expecting to have a return…

A: YTM It is the internal rate of return on a bond when the bond is held till its maturity. A bond…

Q: A bond with 15 years to maturity, a face value of $1000, pays a coupon rate of 14% APR compounded…

A: Solution:- Yield-to-maturity means the rate of return earned by bond holder, if the bond is hold…

Q: You review the characteristics of a recent corporate bond issue and notice that the issuing firm's…

A: Bond rating- are ratings issued by rating organization like Standard & Poor's (S&P) ,…

Q: In order to buy a vacation home, Neal and Lilly took out a 20-year mortgage for $220,000 at an…

A: 1. Calculating the monthly payments on original loan using the table given in question: Original…

Q: Compute the IRR statistic for Project E. The appropriate cost of capital is 9 percent. (Do not round…

A: IRR refers to the internal rate of return. It is an important capital budgeting tool that is used to…

Q: at are financial markets? 2. Differentiate the different type

A: Financial markets facilitate the transfer of savings and investments. This thus makes it easier for…

Q: An automobile company is planning to install inspection procedures to reduce the cost of repairs to…

A: The Internal Rate of Return and the Net Present Value: The internal rate of return or the rate of…

Q: What is a primary market?

A: Financial Markets refer to the place where financial assets or securities are being created,…

Q: Yan Ltd. Has extra cash of US400,000. Its equity is currently valued at US7,000,000. The number of…

A: The ex dividend price is calculated by deducting the dividend per share from cum dividend price per…

Q: Finance Discuss the THREE (3) forms of market efficiency.

A: Market efficiency- It can be best described as the degree to which the information is made available…

Q: What is Commercial paper?

A: Short Term Debt: Also referred to as current liabilities, they are issued by the business to…

Q: If your taxable income is Over- But not Over- $0 $9,275 $9,275 $37,650 $37,650 $91,150 $91,150…

A: Solution:- Income tax is the amount of tax charged by government on the income earned.

Q: Your company wants to raise $8.0 million by issuing 30-year zero-coupon bonds. If the yield to…

A: Solution:- Face value means the par value of which the bonds will be issued.

Q: Roller Inc. has just paid an annual dividend of $0.8. Analysts expect dividends to grow by 8% per…

A: Data given: D0= $0.8 For next 9 years , g=Growth=8% per year  Beyond 9 year g= Growth = 1.5% per…

Q: Cole Co. began constructing a building for its own use in January 2010. During 2010, Cole incurred…

A: Here, Interest on construction debt = 50,000 Other borrowings = 20,000 Interest on the…

Q: money call option on a given stock must cost more than an at-the-money put option on that stock with…

A: The buyer is given the right, but not the responsibility, to purchase the underlying asset by a…

Q: A growing annuity is a cash flow stream with    ________ (an infinite, a finite) life, while a…

A: In the domain of finance annuity and perpetuity are important concepts. Determining the present…

Q: ted average co

A: WACC is calculated by multiplying the cost of each asset source (debt or equity) by the equivalent…

Q: Mikasa Enterprises needs additional funding and intends to sell its shares in the stock market thru…

A: Private enterprises seeking to obtain cash by issuing securities have two options: selling…

Q: Decreasing the number of years of a loan decreases the amount of interest repaid over the term of…

A: a) Calculation of monthly payment for 30 year loan EMI Calculation formula= (P * R *…

Q: Falco Inc. financed the purchase of a machine with a loan at 3.50% compounded semi-annually. This…

A: Present value of annuity Annuity is a series of equal fixed payment, made at equal interval over a…

Q: rate of return of the bond? W

A: Bond price refers to the amount which an investor is willing to pay at the time of existence of…

Q: You are getting ready to start a new project that will incur some cleanup and shutdown costs when it…

A: NPV ( Net present value) : It is the net of expected discounted cash inflows and cash outflows. NPV…

Q: for five years. Should the project be undertaken, if the small business owner would nal value after…

A: Net Present Value: It is estimated by the difference between the present value of cash flows and…

Q: in has a beta of 5.the total value of your portfolio is $200000and you decide to invest another…

A: Beta of portfolio depends on the beta of individual stocks in portfolio and weight of stocks in…

Q: QUESTION 6 If I have a simple discount note for 75 days (ordinary interest), a discount of $150, and…

A: The rate of Discount is calculated with the help of following formula  Rate of Discount = Discount ÷…

Q: n investor buys a $1000 face value bond paying a semi-annual coupon at 9% APR compounded…

A: We need to use RATE function in excel to calculate realised yield. Formula is =RATE(NPER,PMT,-PV,FV)

Q: Describe the traditional banking services provided by financial institutions.

A: Banking is usually a kind of business activity which is done for the safeguarding other people's…

Q: ed and his wife have applied for a $350,000 mortgage to be amortized over of 2.8% and a term of 5…

A: GDS ratio that total payment of mortgage and other related housing expenses to the monthly income…

Q: You purchased a bond with an invoice price of $3540. The bond has a coupone rate of 5.4%, a face…

A: Given,  The invoice price is $3540 Coupon rate is 5.4%