Stocks, bonds options and futures calculation problems
1. How much will you have after 6 years if you invest
$15,000 at 8% per year compounded annually? Quarterly?
2. How much you need to invest now at 8% interest rate
compounded semiannually in order to have $10,000 in 5 years from now?
3. Find the present value of $12,000 due four years from now
if rate of interest is 6.0% per year and compounded quarterly ?
4. What is the market value of a 60-day $5,000,000
commercial paper if rate of interest is 6.5% and compounded monthly?
4. You borrow $10,000 for one year with the nominal interest
of 6.9% per year compounded monthly. You are required to pay the lender the
principle and interest after one year. What is the APR of this loan if the
lender charges $350 application and processing fee and you agree that $350 to
be added to your loan? What is the APR if you withdraw $350.00 from your saving
account, which pays 3.5%, and pay the charge up front?
5.Assume you buy a $5000 corporate bond with 6.0 percent
coupon rate of $4850. This bond will mature in three years. If you hold the
bond till maturity, what will be the yield to maturity? What is the bonds
current yield? What is the average annual rate of return on investment?
6.The conversion ratio for XYZ convertible debenture is 20.
You buy a $1000 of this bond at $100 premium. What is the parity price of XYZ
stock?
