Sweeney Sailboats’ bonds have 20 years remaining to maturity.  Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 10 percent; and the yield to maturity is 9.5 percent.  What is the bond’s current market price?

Joe plans to retire in 22 years.  He currently has saved up $400,000, and he believes he will need $1,000,000 at retirement.  What annual interest rate must Joe earn to reach his goal, assuming he does not save any additional funds between now and retirement?

Wilson Corporation’s balance sheet has $45,000 total assets and $30,000 total liabilities. The firm nowhas 1,000 shares of common stock outstanding, and it sells at a price of $42.00 per share.  How much is MVA of WilsonCorporation?

What is the present value of a perpetuity that pays $3,800 per year if the discount rate is 5 percent?

An investment will pay $1,000 at the end of each of the next 2 years, $800 at the end of Year 3, and $700 at the end of Year 4.  What is its present value if other investments of equal risk earn 10 percent annually?

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)?