Fin 405- Chapter Questions

1. You are regarding a car mortgage succeeding a while a stated APR of 6% naturalized on monthly compounding. What is the effectual annual scold of this mortgage? 2. Your order wants to breed $10 pet by issuing 20-year zero-coupon fetters. If the succumb to ripeness on the fetters gain be 6% (every-year compounded APR), what completion highest aggregate of fetters must you conclusion? 3. The succumb to ripeness of a $1000 fetter succeeding a while a 7% coupon scold, semiannual coupons, and two years to ripeness is 7.6% APR, compounded semiannually. What must its charge be? 4. Summit Systems gain pay a dividend of $1.50 this year. If you await Summit’s dividend to advance by 6% per year, what is its charge per distribute if the firm’s equity require of high is 11%? 5. The forthcoming consultation contains charges and dividends for a store. All charges are succeeding the dividend has been compensated. If you bought the store on January 1 and sold it on December 31, what is your realized produce?                                       Price     Dividend   Jan 1                              10.00   Mar 31                          11.00            0.20   Jun 30                          10.50           0.20   Sep 30                           11.10           0.20   Dec 31                           11.00           0.20