Problem 13-10 You are given the following information concerning a noncallable, sinking fund debenture: Principal: $1,000 Coupon rate of interest: 6 percent Term to maturity: 17 years Sinking fund: 4 percent of outstanding bonds retired annually; the balance at maturity and Appendix D to answer the question. Use a minus sign to enter the loss amount, if any, as a negative value. Round your answer to the nearest dollar. $b. If you hold the bond 17 years, what do you receive at maturty? c. What is the bond's current yield as of right now? Round your answer to the nearest whole number.% d. Given your price in a, what is the yield at maturity? Round your answer to the nearest whole number. %e. What proportion of the total debt issue is retired by the sinking fund? Round your answer to the nearest whole number. % question. Round your answer to the nearest dollar. $ 0

Problem LU – 3 Today Arrow Company issued bonds that will mature to a value of $120,000 in 20 years. Arrow's controller is planning to set up a sinking fund. Interest rates are 6% compounded semiannually. What will Arrow Company have to set aside to meet its obligation in 10 years?

Topic: Yield Rates An investor makes a single deposit of 10,000 into fund A for 10 years which earns a 6% effective rate of interest payable directly to the investor each year. During the first 5 years, the interest payments can only be reinvested into Fund B which earns 4% effective over the entire 10-year period. During the second 5 years, the interest payments can only be reinvested into Fund C which earns 5% effective. a. find the total accumulated value in Funds A, B and C combined at the end of 10 years.b. find the overall yield rate achieved by the investor.

20)Corporate fund started the year with a net asset value of GHS12.25. By year-end, its NAV equaled GHS12.10. The fund paid year-end distributions of income and capital gains of GHS1.50. What was the (pretax) rate of return to an investor in the fund?

QUESTION 38   ABC Inc. plans to issue $500,000 face value bonds with a stated interest rate of 10% and market interest rate of 12%.  They will mature in 10 years.  Interest will be paid semiannually.  At the date of issuance, compute the present value (bond issue price) of the future cash flows.  Following are appropriate factors from tables:      Table %   /  n Present Value of $1 Present Value of ordinary annuity of $1 10%/10          .38554            6.14457 12%/10          .32197            5.65022   5%/20          .37689          12.46221   6%/20          .31180          11.46992       $286,748     $155,900     $442,648     $467,455.25

D3) Finance You invest in a mutual fund that charges a 3% front-end load, 1% operating costs, and a 1% 12b-1 fees. What are the total fees in year 1 on an initial investment of $20,000 with 10% annual growth in fund's asset value, or NAV? Note that "initial investment" means it is before the deduction of frontend load.

Consider a $100 levered mutual fund that will liquidate in 5 years. The funds capital structure consists of 80% debt and 20% equity. The portoflio is invested in public equities. At the end of the 5th (and final) year, the market value of the public equities is $70. The market value of the funds equity position is most likely: <$0 $0 >$0

You are given the following information concerning a noncallable, sinking fund debenture: Principal: $1,000 Coupon rate of interest: 7 percent Term to maturity: 12 years Sinking fund: 3 percent of outstanding bonds retired annually; the balance at maturity   If you buy the bond today at its face amount and interest rates rise to 12 percent after five years have passed, what is your capital gain or loss? Assume that the bond pays interest annually. Use Appendix B and Appendix D to answer the question. Use a minus sign to enter the loss amount, if any, as a negative value. Round your answer to the nearest dollar. $   If you hold the bond 12 years, what do you receive at maturity? -Principal  or All coupon payments? What is the bond's current yield as of right now? Round your answer to the nearest whole number.   % Given your price in a, what is the yield at maturity? Round your answer to the nearest whole number.   % What proportion of the total debt issue is retired by the…

Lever Age pays a(n) 8% rate of interest on $10.6 million of outstanding debt with face value $10.6 million. The firm’s EBIT was $1.6 million. a. What is times interest earned? (Round your answer to 2 decimal places.)   Times interest earned    b. If depreciation is $260,000, what is cash coverage? (Round your answer to 2 decimal places.)   Cash coverage    c. If the firm must retire $360,000 of debt for the sinking fund each year, what is its “fixed-payment cash-coverage ratio” (the ratio of cash flow to interest plus other fixed debt payments)? (Round your answer to 2 decimal places.)   Fixed-payment cash-coverage ratio

4.10 On January 1, a fund was valued at 100. On April 1, the fund increased invalue to 140 and 40 of new principal was injected. On October 16, the fundvalue dropped to 125, and 10 was withdrawn. At the end of the year, the fundwas worth 135. Calculate the DWRR and the TWRR.