Finc 3 - Study guides, Class notes & Summaries

FINC 331 Quiz 3 With Verified Answers. Nico Corp issued bonds bearing a coupon rate of 12 percent, pay coupons semiannually, have 3 years remaining to maturity, and are currently priced at $940 per bond. What is the yield to maturity? A. 14.54% B. 13.99% C. 15.25% D. 12.00% - CORRECT ANSWER A. 14.54% PMT=60 (.12*10000)/2 N=6 (3*2) FV=1000 PV=940 ---------- I/Y= 7.2693*2= 14.54 A firm has issued cumulative preferred stock with a $100 par value and a 12 percent annual ...

Larry can borrow $1,000 from Mary. She wants him to pay her $1,290 in 3 years. About what would the YTM be for the loan? 8.86% The _____ interest rate more accurately reflects the total cost of borrowing. real Bonds with relatively low risk of default are called _____ investment grade bonds. ______ are major disruptions in financial markets that are characterized by sharp declines in asset prices and the failures of many financial and non financial firms. Financial crisi...

After reading the new account insert in his monthly statement, Tony Mercadante determined that the FDIC considers a joint account as a separate depositor. He and his wife, Cynthia, have three accounts at ABC Bank & Trust, one joint account with a balance of $60,000 and two individual account - his has a $150,000 balance, and hers has a $254,000 balance. What amount of FDIC coverage do Tony and Cynthia have on their accounts? correct answers Tony's account balance of $150,000 is completely cover...

FINC 324 Exam Questions & Answers Capital budgeting decisions that include both investment and financing decisions can be analyzed by: I) Adjusting the present value II) Adjusting the discount rate III) Ignoring financing mix - D. I and II only Total market value of a firm (V): [D = market value of debt; E = market value of equity] - A 3. The after-tax weighted average cost of capital is determined by: A. Multiplying the weighted average after tax cost of debt by the weighted avera...

A corporate bond's coupon rate is the annual coupon payment divided by: the bond's face value. the bond's current price. $100. the bond's maturity period. correct answers The bond's face value University Corp. issued five-year bonds that pay a coupon of 6.5 percent semiannually. The current market rate for similar bonds is 5.5 percent. How much will you be willing to pay for the bond today? Do not round intermediate calculations. Round your answer to the nearest dollar. $1,043 $1,0...

FINC 371 - Exam 1 (Peterson) Anapaula Questions & Answers 100% CorrectFINC 371 - Exam 1 (Peterson) Anapaula Questions & Answers 100% CorrectFINC 371 - Exam 1 (Peterson) Anapaula Questions & Answers 100% CorrectFINC 371 - Exam 1 (Peterson) Anapaula Questions & Answers 100% CorrectWhat is Real Estate? - ANSWERLand + Improvements Improvements = Anything reasonably permanently attached/affixed to land. What are the 6 most important things in Real Estate? - ANSWERLocation, Location, Location T...

Which of the following will increase the future value of a lump sum amount to be received in 15 years? a. A decrease in the present value b. Changing to simple interest from compound interest c. An increase in the interest rate d. A decrease in the future value e. A decrease in the interest rate correct answers C The present value of a lump sum future amount: a. Is directly related to the interest rate b. Decreases as the time period increases c. Is inversely related t...

FINC 3250 Final Exam Tomlinson Questions and Answers 2024 1. Why do you need a property manager?: property managers are needed to find tenants, set rent, and manage your property 2. What are the powers of a property manager: set rents, negotiate leases, make settlements with tenants, collect rent, pay bills, supervise property personnel 3. how do property manager's get paid: take a percentage of gross property income 4. what are the duties of the property manager: administration, ...

FINC 381 Midterm Questions With Complete Solutions

What is a Forward Contract? Ans- ∙A forward contract is a binding agreement to buy/sell an underlying asset in the future at a price set today Describe the meaning of a forward price, delivery date and payoff of a forward contract Ans- ∙The forward price is the price at which two parties agree today to transact/deliver in the future ∙The delivery date is the time at which the contract is settled ∙The payoff of a forward contract is the value created by the position at expira...