FIN 370 Week 3 Risk and Return Problem Set (in Excel)

7-21 Compute Bond Price Compute the price of a 3.8 percent coupon bond with 15 years left to maturity and a market interest rate of 6.8 percent. (Assume interest payments are semiannual.) Is this a discount or premium bond? (LG7-4)
 
  7-27 Yield to Maturity A 5.65 percent coupon bond with 18 years left to maturity is offered for sale at $1,035.25. What yield to maturity is the bond offering? (Assume interest payments are semiannual.) (LG7-6)
  
 8-19   Value a Constant Growth Stock Financial analysts forecast Safeco Corp.- (SAF) growth rate for the future to be 8 percent. Safeco- recent dividend was $0.88. What is the value of Safeco stock when the required return is 12 percent? (LG8-5)
 
  
8-21   Expected Return Ecolap Inc. (ECL) recently paid a $0.46 dividend. The dividend is expected to grow at a 14.5 percent rate. At a current stock price of $44.12, what is the return shareholders are expecting? (LG8-5)
 
  
9-33  Risk, Return, and Their Relationship Consider the following annual returns of Estee Lauder and Lowe- Companies:
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09 Apr 2016

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  1. geniusy_2006

    FIN 370 Week 3 Risk and Return Problem Set (in Excel)

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