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20. Calculating Loan Payments [LO2, 4] You want to buy a new sports
coupe for $79,500, and the finance office at the dealership has quoted
you an APR of 5.8 percent for a 60-month loan to buy the car. What will
your monthly payments be? What is the effective annual rate on this
loan?
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Ch. 7: Questions 3 &11 (Questions and Problems section)
3. Valuing Bonds [LO2] Even though most corporate bonds in the
United States make coupon payments semiannually, bonds issued
elsewhere often have annual coupon payments. Suppose a German
company issues a bond with a par value of €1,000, 23 years to maturity,
and a coupon rate of 5.8 percent paid annually. If the yield to maturity is
4.7 percent, what is the current price of the bond?
Excel Sheet
11. Valuing Bonds [LO2] Union Local School District has a bond
outstanding with a coupon rate of 3.7 percent paid semiannually and 16
years to maturity. The yield to maturity on this bond is 3.9 percent, and
the bond has a par value of $5,000. What is the price of the bond?
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Ch. 8: Questions 1 & 6 (Questions and Problems section):
Microsoft® Excel® template provided for Problem 6
1.
Stock Values [LO1] The Jackson–Timberlake Wardrobe Co. just
paid a div idend of $1.95 per share on its stock. The dividends are
expected to grow at a constant rate of 4 percent per year indefinitely. If
investors require a return of 10.5 percent on The Jackson–Timberlake
Wardrobe Co. stock, what is the current price? What will the price be in
three years? In 15 years?
6. Stock Valuation [LO1] Suppose you know that a company’s stock
currently sells for $63 per share and the required return on the stock is
10.5 percent. You also know that the total return on the stock is evenly
divided between a capital gains yield and a dividend yield. If it’s the