Find the value at the end of 5 years of Ahmed’s $2000 deposit in an account paying 9% annual interest rate compounded continuously.
3 points
Your answer
6. Assume a bond’s par value is 5000, coupon interest rate 9%, annual interest payment $200, required rate of return 11% andnumber of years to maturity is 10 years. What is bond’s present value?
5 points
Your answer
7. Corporate bond issuer can repurchase the bond at a stated call price to maturity. This is called
2 points
Your answer
8. Inclusion of what purchase warrant would enable the issuer to pay a slightly lower coupon interest rate than expected –
2 points
Your answer
9. A measure of a bond’s cash return for the year called
2 points
Your answer
10. A legal document that specifies both the rights of the bondholders and and the duties of the issuing corporation is called
2 points
Your answer
11. Provision in a bond indenture that place operating and financial constrain on the borrower is called
2 points
Your answer
12. You are given 2020 FCF value of 1,000,000 and 5% growth rate. Weighted average cost of capital is 10%. Find the FCF value of 2021.
No need explnation
