3324 Investments Week 2 Alfredo Nazario - 4. Yield to call...

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1. The coupon bond has a higher effective annual interest rate at 10.25% 2. The bond pays $50 dollars every six months and current price 1052.42, six months from now 1044.52, rate of return is 4% 3. Nominal second year .071196 and real second year 4% Third year nominal .050400 and real is 4%
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Unformatted text preview: 4. Yield to call is 6.736% annually, (b) 5.952% (c) 6.062% Chapter 13 3. (a) 12% (b) 18.18 The companies price to earnings ratio will decrease 5. (a) 23.33 and P/E 11.67 (b) 6.66 (c) P/E 10 PVGO 3.33 11. $20.00 18. (a) CAPM=13% Gordon $22.40 (b) 9,97 22. (a) $101.82 (b) 18.52%...
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This note was uploaded on 09/04/2011 for the course ACCT 3013 taught by Professor Sutton during the Spring '11 term at The University of Texas at San Antonio- San Antonio.

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