Question
Q:If you invest $2,000 a year in a retirement account, how much will you have in 40 years at 12%?
-There is a stock that pays dividends of $2.00 at the end of 1st yr, $2.20 at the end of 2nd yr, and $2.40 at the end of 3rd yr. At the end of 3rd yr the stock will sell for $33.00 what is the present value of all future benefits if a discount rate of 11% is applied?
-$1,000 par value bonds are outstanding at 8% interest. The bonds mature in 25 yrs. What is the current price of the bonds if the present yield to maturity is 13%?
-Preferred stock is issued at a fixed dividend of $6 per share. With time yields have soared to 14%.
If the yield on the S&P preferred stock index declines, how will the price of the preferred stock be affected?
