Question

The coupon Tate 21. A 20 year bond has par va 8% and it is paying annua A) $80 B) $88 c) $50 D) $55 bond has par value of $1,000 and it is currently trading for $1,100. The coupe is paying annually. If the vield to maturity is 5%, what is the bonds coupon paym PV = 411100 Fv - $1.000 i 5% N-20 Answer: nd of $1.10 annually. If the expected rate of return is 10% 22. A preferred stock pays dividend of $1.10 annually. If the expected race the stock's current price? A) $1.10 B) $11.00 C) $10.00 D) $22.00 swer: A 3. Which of the following financial statements is a representation of the accounting A) Income Statement B) Balance Sheet c) Statement of Change in Shareholder Equity D) Statement of Cash Flow wer: B Which of the following ratios represents how many times the company's ear are willing to pay for its stock?

Answer 1

21. Coupon =Coupon Rate*par value =8%*1000 =80 (Option A is correct option)

22. Stock Price =Dividend/Required Rate =1.10/10% =11 (Option b is correct option)

23. Balance Sheet is correct option(Option b)