EBK CORPORATE FINANCE
4th Edition
ISBN: 9780134202785
Author: DeMarzo
Publisher: VST
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Chapter 30, Problem 13P
a)
Summary Introduction
To determine: The value of assets and liabilities of C fund.
Introduction:
The duration of the securities are equal to the weighted average maturity of the cash flow.
Summary Introduction
To determine: The value of equity.
b)
Summary Introduction
To determine: The duration of C fund’s equity.
Introduction:
The duration of the securities are equal to the weighted average maturity of the cash flow.
c)
Summary Introduction
To determine: Number of dollars Person X requires to liquidate and reinvest which helps to minimize the interest rate sensitivity of funds.
d)
Summary Introduction
To determine: The notational amount of the swap.
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The general fund has the following transactions for 2022:
Issued $1,000,000 face value bonds with a coupon rate of 3%.
Made a $100,000 principal payment on the bonds.
Made a $25,000 interest payment on the bonds.
Accrued interest due in 2023 on the bonds is $5,000.
What is the effect of the above transactions on the general fund's fund balance in 2022?
Corporate Fund started the year with a net asset value of $12.50. By year-end, its NAV equaled $12.10. The fund paid year-end distributions of income and capital gains of $1.50. What was the (pretax) rate of return to an investor in the fund?
On October 24, 2020, the market value of the investments contained in the Global Investment Fund, a mutual fund, was $28,000,000. Liabilities for the fund were $2,800,000.
If the fund had 1,340,000 shares outstanding, calculate the net asset value per share. Round your answer to the nearest cent.
Chapter 30 Solutions
EBK CORPORATE FINANCE
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