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Finc 5000 Homework Assignment for Week 3:B

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FINC 5000 Homework Assignment for Week 3:

Click Link Below To Buy: http://hwcampus.com/shop/finc-5000-homework-assignment-for-week-3/ Chapter 5:
For Week 3, please turn in the answers to the following questions:
1. Define the following terms as they apply to bonds:
a. Face value
b. Maturity date
c. Coupon interest (including coupon interest rate)
d. Current yield
e. Yield to maturity (YTM)
f. Yield to call (YTC)
g. Call premium
2. What are “Zero-coupon” bonds?
3. Suppose you see the following bond price quote in the newspaper:
McDonalds 5.7% 2039……..122.733
What can you tell about this bond from reading the price quote?
4. (calculating the present value of a bond) If a corporate bond with a face value of $1,000 has 24 years to go until it matures, has a coupon interest rate of 5.7% and a yield to maturity (YTM) of 4.201%, what should be its price in the bond market (ie, PV)?
5. (calculating the current yield of a bond) If a corporate bond with a face value of $1,000 has 24 years to go until it matures, has a coupon interest rate of 5.7% and a market price of $1,223.92, what is its current yield?
6. (calculating the YTM of a bond) If a corporate bond with a face value of $1,000 has 24 years to go until it matures, has a coupon interest rate of 5.7% and a market price of $1,223.92, what is its yield to maturity (YTM)?
7. (calculating the YTC of a bond) Assume a callable corporate bond with a face value of $1,000, a coupon interest rate of 5.7%, a market price of $1,223.92, and a call premium of 6%. Assume also that the bond has 24 years to go until it matures, but it is callable after 14 years. What is the bond’s yield to call (YTC)?
8. (calculating the present value of a bond with semi-annual coupon interest payments) If a corporate bond with a face value of $1,000 has 24 years to go until it matures, has a coupon interest rate of 5.7%,paid

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...WEBSTER UNIVERSITY • WESTPORT, ST LOUIS, MO • GEORGE HERBERT WALKER SCHOOL  OF BUSINESS & T ECHNOLOGY • BUSINESS DEPARTMENT BASIC FINANCE FOR MANAGERS BUSN­5200 SU 2015   Section 07   3 Credits 06/01/2015 to 07/31/2015   Modified 05/20/2015 MEETING TIMES Thursday, 5:30 PM to 9:30 PM, Westport Campus  CONTACT INFORMATION Mike Boland Email: michaelboland57@webster.edu (mailto:michaelboland57@webster.edu) Phone:  636­236­3636 DESCRIPTION Managers and human resources management professionals must be able to understand financial information contained in financial statements and reports. Line managers must be able to understand financial information contained in financial statements and reports in order to evaluate their unit's financial performance, to communicate clearly with other managers, and to apply financial information when making decisions. Human resources management professionals must understand financial statements and principles if they are to effectively assist line managers and be strategic partners with other business functions. This course will focus on the interpretation and use of basic financial information by non­financial managers, not on the production of financial statements and reports. (FINC 5000 cannot be substituted for BUSN 5200.) Requisites None OBJECTIVES OUTCOMES Outcome Expectation Students have a basic familiarity with the field of finance and an understanding of the financial goal of a business, and they have an appreciation for ...

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