Monsters Inc. is planning a major campus expansion to meet growing demand and intends to finance it by issuing 1,000-year bonds. Based on market research and advice from their bankers, they have identified the following risk premiums: Default risk premium: 6.45% Maturity premium: 3.5% Liquidity premium: 1.29% Nominal risk-free rate (base rate): 5.1% What interest rate (yield) should Monsters Inc. offer on these bonds to attract investors and raise the necessary capital? Enter your answer with two decimals.

The BlazeBerry Spark credit card charges an annual interest rate (APR) of 24%, with interest compounded daily. What is the effective annual rate (EAR) on this card? Hint: Assume 365 days in a year. Enter your answer rounded to two decimal places.

What happens in the primary market?

BiggCity Bank has an outstanding bond with 10 years remaining until maturity and a face value of $1,000. The bond pays a 4.4% annual coupon, with interest paid semi-annually. If the current market yield is 6.0% annually (compounded semiannually), what is the bond’s current market price?Enter your answer with two decimal places.

Monsters Inc. has an outstanding bond with a face value of $1,000 and 5 years remaining until maturity. The bond pays a 4.50% annual coupon, with semi-annual payments. The current market yield is 6.0% per year. What should be the current market price of the bond? Enter your answer as a positive number rounded to two decimal places.

Red Tiger Trading has reported annual net income of $255,000 and has 115,000 shares outstanding. The company distributes 60% of its earnings as dividends. Its stock is currently trading at $33 per share. What is the company’s dividend yield? Enter your answer rounded to two decimal places.

The BlazeBerry Spark credit card charges an annual interest rate (APR) of 30%, with interest compounded daily. What is the effective annual rate (EAR) on this card? Hint: Assume 365 days in a year. Enter your answer rounded to two decimal places.

Golden Tiger Trading recently reported annual net income of $245,000 and has 120,000 shares outstanding. The company paid out 70% of its earnings as dividends. They do not plan to change the dividend policy and plan to keep the dividend per share constant in the near future. If investors require a 14% return, what is the fair value of the company’s stock? Enter your answer as a dollar amount rounded to two decimal places.

Moneypenny Inc. has bonds outstanding with a $1,000 face value and 10 years left until maturity. James purchased these bonds 2 years ago for $885. The bonds pay semi-annual interest at an annual coupon rate of 5.4%. Due to an emergency cash need, James now has to sell the bonds and can do so for $775. What is his annualized realized yield on this investment? Hint: Enter your answer as a percentage rounded to two decimal places.

Neonates may theoretically experience increased pain from repeated heel punctures as a result of: