What is the present value of a security that will pay $3,000 in 30 years if securities of equal risk pay 13 percent annually?

You put 45% of your money in a stock that has an expected return of 14%. You put the rest of you money in a bond that has an expected return of 6%. What is the expected return of your portfolio?

Suppose you invest $2,100 today in an account that earns a nominal annual rate (inom) of 16 percent, with interest compounded semiannually.  How much money will you have after 11 years?

Bill plans to retire in 27 years.  He currently has saved up $300,000, and he believes he will need $1,000,000 at retirement.  What annual interest rate must Bill earn to reach his goal, assuming he does not save any additional funds between now and retirement?

A firm’s bonds have a maturity of 28 years with a $1,000 face value, a 10 percent semiannual coupon, are callable in 6 years at $1,100, and currently sell at a price of $1,173.  What is their yield to call (YTC)?

Mary recently received a credit card with a nominal interest rate of 19 percent.  With the card, she purchased some new clothes for $375.  The minimum payment on the card is only $10 per month.  If Mary makes the minimum monthly payment and makes no other charges, how long will it be before she pays off the card?

Schallheim Corporation’s outstanding bonds have a $1,000 par value, a 14 percent semiannual coupon, 17 years to maturity, and an 11.5 percent yield to maturity (YTM).  What is the bond’s price?

What is the present value of an annuity due that pays $1,600 per year for 9 years, assuming the annual discount rate is 9 percent?

You have the following data on three stocks: Stock Standard Deviation Beta A 20% 0.59 B 10% 0.61 C 12% 1.29 If you are a strict risk minimizer, you would choose Stock ____ if it is to be held in isolation and Stock ____ if it is to be held as part of a well-diversified portfolio.

Wei Inc. is considering a capital budgeting project that has an expected return of 25% and a standard deviation of 30%. What is the project’s coefficient of variation?