# ADMS3530-Final-F07-TypeA-PartI - Name _Section _ ID # _...

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Page 2 16 Numerical Questions 1. A perpetuity of \$5,000 annually beginning today offers a 15% annual interest rate. What is its present value? A) \$33,333.33 B) \$37,681.16 C) \$38,333.33 D) \$65,217.39 2. What is the yield to maturity on a 10-year zero-coupon bond with a \$1,000 face value selling now at \$658? A) 4.2743% B) 5.1976% C) 6.5800% D) 51.9757% 3. A stock paying a \$5 dividend next year sells now for \$80 and has an expected rate of return of 14% annually. What will be the expected stock price one year from now? A) \$82.20
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## This note was uploaded on 04/11/2011 for the course ADMS 3530 taught by Professor Unknown during the Spring '09 term at York University.

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ADMS3530-Final-F07-TypeA-PartI - Name _Section _ ID # _...

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