FINANCE 251 Lecture Notes - Plasma Display

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13 Jul 2013
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,968,916. 08 n = 40 n = 15 r = 3% r = 4% Yearly deposit in the next 15 years is (c) The actual return is lower than the promised ytm of 5% because the increase in interest rate negatively affects the bond price at the end of year 1. This is the price risk of the bond when the bond is not held until maturity. Fv = 1000 r = 5% r = 7% Since the current price for tel shares is lower than its intrinsic value, it is cheap to buy tel shares. Assume that there are no transaction costs and tax, nick could earn superior return by investing in the tel. Choose plasma tv because the total costs is lower by . 90 (b) Choose lcd tv because the total costs is lower by -. 65.

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