MGFD70H3 Lecture Notes - Lecture 18: Current Yield, Mortgage Loan, Net Present Value
Document Summary
Review of time value of money, bond & stock valuation, and capital budgeting. Aggie agata brunetto has recently bought a house from louis lam & david lui home builders. To finance the purchase she took a mortgage loan of ,000 from castor yip & ivan yang bank of. Sheila santos is considering the following investments offered by angelo simoes & navneet hans. Li an & charmaine coutinho inc. issues a new series of bonds on january 1, 2010. The bonds are sold at par (,000), have a 12% coupon and mature in 30 years. What is the ytm at that date: what are the expected current yield and the capital gains yield on july 1, 2030, now assume that you purchase an outstanding bond on march 1, 2030. Jaroslaw & hsiuchih limited (jhl) currently pays per share annual dividend on its common stock in a single annual installment.
