Yield-to-maturity / return on investment

11. What is the yield-to-maturity of the following bond? WHY?

Price = 113

Discount Rate Present Value of Cash Flow of Bond
6% 120
8% 114
9% 112
10% 98

12. What is the return on the following investment?

Income = $400
Price t=0 = $3000
Price t=1 = $4000

13. Given the following information, calculate the Price of the stock.

g = 8%

r = 9%

d(1) = $4

14. Given the following data, calculate the price earnings ratio for the stock,
g = 8%

r = 9%

Payout ratio of earnings = 40%

© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/business/finance/yield-to-maturity-return-on-investment-3eu9