[Solved] Assignment 217896

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Subject: Business    / Finance
Question
QUESTION 14Pluto Inc. recently issued bonds that mature in 10 years. The bonds have a par value of $1,000 and a coupon rate of 13%. Coupon payments are made semi-annually. What is the market price of the bond if the yield to maturity is 15%?$931.14$912.38$898.06$879.16$846.86Suppose 1-year T-bills currently yield 8.00% and the future inflation rate is expected to be constant at 3.20% per year. What is the real risk-free rate of return, r*? Disregard any cross-product terms, i.e., if averaging is required, use the arithmetic average.4.80%3.20%8.00%5.80%11.20%2.5 pointsQUESTION 15Zigma Enterprises’ stock just paid $1 in dividend (D0) per share. The dividend is projected to DECREASE at a constant rate of 5% each year in the future. The required rate of return on the stock is 15%. What is one share of this stock worth?$2.45$6.42$4.75$7.31$3.302.5 pointsQUESTION 16The Samson Company just paid $1.5 in dividend (D0) per share, and that dividend is expected to grow at a constant rate of 6 % per year in the future. The required rate of return on the stock is 13%. What is the company’s current stock price?$20.41$21.26$25.27$24.38$22.71Sydney is considering investing in a bank account that pays a nominal annual interest rate of 5.5%, compounded monthly. If she invests $5,000 at the end of each month, how many months will it take for her account to grow to $100,000?32.268.2813.9823.5019.18

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