固定收益证券作业.doc

.固定收益证券作业11. The amount an investor will have in 15 years if $1,000 is invested today at an annual interest rate of 9% will be closest to:A. $1,350.B. $3,518.C. $3,642.2. Fifty years ago, an investor bought a share of stock for $10. The stock has paid no dividends during this period, yet it has returned 20%, compounded annually, over the past 50 years. If this is true, the share price is now closest to:A. $4,550.B. $45,502.C. $91,004.3. How much must be invested today at 0% to have $100 in three years?A. $77.75.B. $100.00.C. $126.30.4. How much must be invested today, at 8% interest, to accumulate enough to retire a $10,000 debt due seven years from today? The amount that must be invested today is closest to:A. $5,835.B. $6,123.C. $8,794.5. An analyst estimates that XYZs earnings will grow from $3.00 a share to $4.50 per share over the next eight years. The rate of growth in XYZs earnings is closest to:A. 4.9%.B. 5.2%.C. 6.7%.6. If $5,000 is invested in a fund offering a rate of return of 12% per year, approximately how many years will it take for the investment to reach $10,000?A. 4 years.B. 5 years.C. 6 years.7. An investment is expected to produce the cash flows of $500, $200, and $800 at the end of the next three years. If the required rate of return is 12%, the present value of this investment is closest to:A. $835.B. $1,175.C. $1,235.8. Given an 8.5% discount rate, an asset that generates cash flows of $10 in year 1, $20 in year 2, $10 in year 3, and is then sold for $150 at the end of year 4, has a present value of:A. $108.29.B. $135.58.C. $163.42.9. An investor has just won the lottery and will receive $50,000 per year at the end of each of the next 20 years. At a 10% interest rate, the present value of the winnings is closest to:A. $425,678.B. $637,241.C. $2,863,750.10. If $10,000 is invested today in an account that earns interest at a rate of 9.5%, what is the value of the equal withdrawals that can be taken out of the account at the end of each of the next five years if the investor plans to deplete the account at the end of the time period?A. $2,453.B. $2,604.C. $2,750.11. An investor is to receive a 15-year $8,000 annuity, the first payment to be received today. At an 11% discount rate, this annuitys worth today is closest to:A. $55,855.B. $57,527.C. $63,855.12. Given an 11% rate of return, the amount that must be put into an investment account at the end of each of the next ten years in order to accumulate $60,000 to pay for a childs education is closest to:A. $2,500.B. $3,588.C. $4,432.13. An investor will receive an annuity of $4,000 a year for ten years. The first payment is to be received five years from today. At a 9% discount rate, this annuitys worth today is closest to:A. $16,684.B. $18,186.C. $25,671.14. If $1,000 is invested today and $1,000 is invested at the beginning of each of the next three years at 12% interest (compounded annually), the amount an investor will have at the end of the fourth year will be closest to:A. $4,779.B. $5,353.C. $6,792.15. An investor is looking at a $150,000 home. If 20% must be put down and the balance is financed at 9% over the next 30 years, what is the monthly mortgage payment?A. $799.33.B. $895.21.C. $965.55.16. Given daily compounding, the growth of $5,000 invested for one year at 12% interest will be closest to:A. $5,600.B. $5,628.C. $5,637.17. Terry Corporation preferred stocks are expected to pay a $9 annual dividend forever. If the required rate of return on equivalent investments is 11%, a share of Terry preferred should be worth:A. $81.82.B. $99.00.C. $122.22.18. Ashare of George Co. preferred stock is selling for $65. It pays a dividend of $4.50 per year and has a perpetual life. The rate of return it is offering its investors is closest to:A. 4.5%.B. 6.9%.C. 14.4%.19. If $10,000 is borrowed at 10% interest to be paid back over ten years, how much of the second years payment is interest (assume annual loan payments)?A. $937.26.B. $954.25.C. $1,037.26.20. What is the effective annual rate for a credit card that charges 18% compounded monthly?A. 15.38%.B. 18.81%.C. 19.56%.分析题1. The Parks plan to take three cruises, one each year. They will take their first cruise 9 years from today, the second cruise one year after that, and the third cruise 11 years from today. The type of cruise they will take currently costs $5,000, but they expect inflation will increase this cost by 3.5% per year on average. They will contribute to an account to save for these cruises that will earn 8% per year. What equal contributions must they make today and every year until their first cruise (ten contributions) in order to have saved enough for all three cruises at that time? They pay for cruises when taken.2. Acompanys dividend in 1995 was $0.88. Over the next eight years, the dividends were $0.91, $0.99, $1.12, $0.95, $1.09, $1.25, $1.42, $1.26. Calculate the annually compounded growth rate of the dividend over the whole period.3. An investment (a bond) will pay $1,500 at the end of each year for 25 years and on the date of the last payment will also make a separate payment of $40,000. If your required rate of return on this investment is 4%, how much would you be willing to pay for the bond today?4. Abank quotes certificate of deposit (CD) yields both as annual percentage rates (APR) without compounding and as annual percentage yields (APY) that include the effects of monthly compounding. A$100,000 CDwill pay $110,471.31 at the end of the year. Calculate the APRand APY the bank is quoting.5. Aclient has $202,971.39 in an account that earns 8% per year, compounded monthly. The clients 35th birthday was yesterday and she will retire when the account value is $1 million.A. At what age can she retire if she puts no more money in the account?B. At what age can she retire if she puts $250/month into the account every month beginning one month from today?6. At retirement nine years from now, a client will have the option of receiving a lump sum of 400,000 or 20 annual payments of 40,000 with the first payment made at retirement. What is the annual rate the client would need to earn on a retirement investment to be indifferent between the two choices?Use the following data to answer Questions 1 and 1Assume an investor purchases a share of stock for $50 at time t = 0, and another share at $65 at time t = 1, and at the end of year 1 and year 2, the stock paid a $2.00 dividend. Also, at the end of year 2, the investor sold both shares for $70 each. 1. The money-weighted rate of return on the investment is:A. 15.45%.B. 16.73%.C. 18.02%.2. The time-weighted rate of return on the investment is:A. 18.27%.B. 20.13%.C. 21.83%.3 What is the bank discount yield for a T-bill that is selling for $99,000, with a face value of $100,000, and 95 days remaining until maturity?A. 1.51%.B. 3.79%.C. 6.00%.4. What is the holding period yield for a T-bill that is selling for $99,000 if it has a face value of $100,000 and 95 days remaining until maturity?A. 1.01%.B. 2.03%.C. 3.79%.5. What is the effective annual yield for a T-bill that is selling for $99,000 if it has a face value of $100,000 and 95 days remaining until maturity?A. 3.79%.B. 3.94%.C. 4.50%.6. What is the money market yield for a T-bill that is selling for $99,000 if it has a face value of $100,000 and 95 days remaining until maturity?A. 3.79%.B. 3.83%.C. 3.90%.7. Which of the following is least accurate regarding a bank discount yield?A. It ignores the opportunity to earn compound interest.B. It is based on the face value of the bond, not its purchase price.C. It reflects the nonannualized return an investor will earn over a securitys life.8. A 175-day T-bill has an effective annual yield of 3.80%. Its money-market yield is closest to:A. 1.80%.B. 3.65%.C. 3.71%.1. A Allison Rogers, CFACFA, makes the following statement: “The problems with bank discount yields quoted for T-bills is that they arent yields, they ignore compounding, and they are based on a short year.”A. I Is she correct in all regards?B. Which of these problems is/are remedied by using the holding period yield?C. Which of these problems is/are remedied by using a money market yield?D. Which of these problems is/are remedied by using effective annual y