Variety of investments for your 401K plan/TUTORIALOUTLET DOT COM Variety of investments for your 401K plan/TUTORIAL | Page 2

house with a $30,000 down payment. The
loan amount is $297,000. The annual interest rate is 3 ¾ %
and the loan is for 360 months. What are your payments? Find the the
value of a preferred stock with a 6% coupon and $100 par
value with a required rate of return of 10%. Calculate the yield to
maturity of a 10% coupon bond with 5 years to maturity if the bond
sells for $927.91. The face value of the bond is $1,000. Assume
semiannual coupon
payments. If a new company is expected to growth exponentially and
pay dividends of
$1, $2, and $3, for the first 3 years, respectively. After that time the
growth
is expected to be at 5% thereafter. The required rate of return is 10%.
You
can use the PV and the Gordon Growth model to estimate the value of
the
stock.