BUSI 2504 Study Guide - Midterm Guide: Preferred Stock, Market Capitalization, Aston Martin Db3
3 Nov 2015
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Name: ______________________________ student number: ___________________ date: _______________ (1+ r)n r. Fvifa = (1+ r)n - 1 od (1+ g) r - g. Please respond by completing the scantron in the usual way. If there is a small difference between your calculated answer and the answers provided in the choices, please choose the answer that is closest to your calculation. It can be helpful in some cases to show your calculations either on the exam paper or in the booklets provided. What is the corresponding ear: 8. 19, 6. 34, 9. 23, 6. 56, none of the above r infinite n. 8. 19: plotting a yield curve can involve determining the discount rates for zero coupon bonds. The observed prices for ,000 face value 4 and 5-year maturity zero-coupon bonds are . 77 and . 58 respectively. What are the discount rates corresponding to these maturities: 7. 23% and 7. 95, 7. 55% and 8. 19, 8. 12% and 8. 45, 9. 12% and 9. 37, none of the above.
