Mr. Andrews in an investor who is willing to invest some amount in the financial securities for a period of 7 years. Company ZTC is offering a 7 year zero-coupon bond of the face value of $5,000. The yield-to-maturity (YTM) of this zero-coupon bond is 5.00% with semi-annual compounding. Mr. Andrews is really interested in buying this bond and wants to know the maximum current price of this bond he must pay?

What is a sort of auction for stocks in which traders verbally submit their offers?

The uptowner just paid an annual dividend of $4.12. the company has a policy of increasing the dividend by 2.5 percent annually. you would like to purchase shares of stock in this firm but realize that you will not have the funds to do so for another four years. if you require a rate of return of 16.7 percent, how much will you be willing to pay per share when you can afford to make this investment?

What’s the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5%? $4,750 $5,000 $5,250 $5,513 $5,788what is the present value of the following cash flow stream at a rate of 8.0%, rounded to the nearest dollar? cash flows: today (t = 0) it is $750, after one year (t = 1) it is $2,450, at t = 2 it is $3,175, and at t=3 it is $4,400. draw a time line. $7,917 $8,333 $8,772 $9,233 $9,695