Section 12 - Chap 12

Section 12 - Chap 12 - AEM 323 Section Problem Set 12...

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AEM 323 Section Problem Set 12 Covering Material from Chapter 12 Problem 1 It is April 25, 2005 and you wish to make an investment. Analyze the following investments over a 5 year horizon using Net Present Value: I. 5 year Treasury bond Current price is $10,000 4% interest (paid annually and assume today’s payment was already made) $10,000 principal Matures April 25, 2005 (A bond pays back its principal at maturity) 1,161.00 $ 1,705.89 $ Expected Dividends: 2006 46.44 $ (to be paid on April 25) 2007 50.16 $ 2008 54.17 $ 2009 58.50 $ 2010 63.18 $ 1
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Problem 2 Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return that she is earning. For example, three years ago she paid $13,000 for 200 shares of Malti Company's common stock. She received a $420 cash
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This note was uploaded on 08/31/2010 for the course AEM 3230 taught by Professor Little,j.e. during the Spring '08 term at Cornell.

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Section 12 - Chap 12 - AEM 323 Section Problem Set 12...

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