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 Posted by: Homeworkhelp Price Quoted by Student: \$6 Posted On: 2011-01-18 01:01:01

Question
 1. A convertible bond has a 8% annual coupon and 15 years to maturity. The face value is \$1,000 and the conversion ratio is 40. The stock currently sells for \$20.875 per share. Similar nonconvertible bonds are priced to yield 9%. The value of the convertible bond is at least 2What is the net present value of a project that contributes \$10,000 at the end of the first year and \$5,000 at the end of the second year? The initial cost is \$8,000 and the appropriate interest rate is 10%   3. If the stated rate of interest is 12% and it is compounded monthly, what is the effective annual interest rate? 4. Thorton will receive an inheritance of \$500,000 three years from now. Thorton's discount rate is 10% interest rate compounded semiannually. Which of the following values is closest to the amount that Thorton should accept today for the right to his inheritance?   5 In 2004, TimeNow Corporation had current assets of \$260 and current liabilities of \$180. In 2003, current assets were \$220 and current liabilities were \$160. What was the change in net working capital for TimeNow in 2004?   6. You bought 100 shares of stock at \$20 each. At the end of the year, you received a total of \$400 in dividends, and your stock was worth \$2,500 total. What was your total return? 7. What is the present value of 10 annual payments of \$500 at a discount rate of 12%?8. Union Company share are currently selling for \$25 each. You bought 200 shares one year ago at \$24 and received dividend payments of \$1.50 per share. What was your total rate of return?

Solutions
1. A convertible bond has a 8% annual coupon
 Price \$6
Attachment 1: A convertible bond has a 8%.doc
Solution Posted By: Homeworkhelp    Posted on: 18-01-2011