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  1) You have just purchased a new warehouse

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Multiple Choice

• $2,328.48

• $2,212.05

• $2,220.07

• $408.66

• $362.07

3)

 4)Bond X is noncallable and has 20 years to maturity, a 9% annual coupon, and a $1,000 par value. Your required return on Bond X is 12%; if you buy it, you plan to hold it for 5 years. You (and the market) have expectations that in 5 years, the yield to maturity on a 15-year bond with similar risk will be 8%. How much should you be willing to pay for Bond X today? (Hint: You will need to know how much the bond will be worth at the end of 5 years.) Do not round intermediate calculations. Round your answer to the nearest cent.

5) Last year Janet purchased a $1,000 face value corporate bond with an 10% annual coupon rate and a 20-year maturity. At the time of the purchase, it had an expected yield to maturity of 13.08%. If Janet sold the bond today for $1,051.15, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places.