Assignment I (Part B)

Assignment I (Part B) - AssignmentI(PartB) COMM308

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Assignment I (Part B) COMM 308 In addition to the following problems, answer problems 1 to 30 which are in  Part A of the assignment. 31. The present value of an ordinary annuity is $10,000. If it was an annuity due, what  would its present value be? (The interest rate is 10%) A. $10,000 B. $9,090.91 C. $11,000 D. The question can’t be answered because the number of payments in the annuity is  not given. 32.  A bond with a coupon of 8% pays interest on December 31 and June 30. On  October 12, the quoted price was $1038.42. What was the cash price of the bond? A. $997.88 B. $1,010.68 C. $1,043.49 D. $1,061.22 E. None of the above 33.  If the expected inflation rate goes up, which of the following is likely to go up?
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I. Nominal rate of interest II. Real rate of interest A. I  B. II  C. Both D. None 34. The current dividend (D 0 ) is $0.75. The constant growth rate in dividends is 4%. If 
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This note was uploaded on 10/16/2010 for the course COMM Comm 308 taught by Professor Ravimateti during the Fall '09 term at Concordia Canada.

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Assignment I (Part B) - AssignmentI(PartB) COMM308

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