This preview has intentionally blurred sections. Sign up to view the full version.
View Full DocumentThis is an unformatted preview. Sign up to view the full document.
View Full DocumentFINCOACH: PROBLEMS 1) What is the present value of an annuity of $12 received at the end of each year for seven years? A ssume a discount rate of 11 percent. The first payment will be received one year from today (roun d to nearest $1). A) $25 B) $118 C) $40 D) $57 2) Savells Corporation bonds make a $60 interest payment every six months (until maturity), and pa y $1,000 at maturity 20 years from now. What is the current price of this bond if the discount rate is 10 percent per year compounded semi-annually? A) $608 B) $850 C) $1,172 D) $1,133 3) PDQ Company's preferred stock pays a perpetual annual dividend of $2 per share. If the appropr iate discount rate for this investment is 8 percent, what is the price of one share of this stock? A) $16.00 B) $0.16 C) $25.00 D) $0.25 E) cannot be determined without maturity date 4) You deposit $1,000 one time into a savings account earning a 5 percent annual rate compounded semi-annually. How much will you have in your account at the end of ten years?... View Full Document
This preview has intentionally blurred sections. Sign up to view the full version.
View Full DocumentFinCoachSampleExam
Sample Midterm I
Sample Midterm I-Answer Key
FM11_Ch_14_Test_Bank
FM11_Ch_03_Test_Bank
Chapter 6 Quiz
Practice Test #3
Exam 3 Exam Review Solution
FIN ch 8 beta
FIN_3716_Quiz_9
CHAPTER 11
Copyright © 2015. Course Hero, Inc.
Course Hero is not sponsored or endorsed by any college or university.