PRASAD PLEASE DO NOT ANSWER THIS. YOU ARE ONLY ANSWERING1. I NEED ALL 4. YOU HAVE ANSWERED MULTIPLE WRONG
1. Mike recently leased a car for $385 per month for 5 years.The first payment due today. If the APR is 7.32 percent compoundedmonthly, what is the value of the payments today?
2. You estimate that Valley, Inc. will increase its dividend at4.6 percent for the foreseeable future. The firm recentlydistributed a $3.41 dividend and you estimate the required returnon the stock is 11 percent. Calculate the stock's current marketvalue.?
3. zinger has a bond outstanding with a coupon rate of 5.8percent and semiannual payments. The bond has a yield to maturityof 6.5 percent, a par value of $2,000, and matures in 17 years.Calculate the market value of the bond?
4. Evermore bonds have a par value of $2,000 and sell for$1,950.22. The bond has a coupon rate of 6.87 percent and maturesin 25 years. If the bond makes semiannual coupon payments, what isthe YTM?
