博迪_投资学第九版_英文答案(7)

博迪_投资学第九版_英文答案

7. rates, a high-income investor would be more inclined to pick tax-exempt securities. a. You would have to pay the asked price of:

86:14 = 86.43750% of par = $864.375

The coupon rate is 3.5% implying coupon payments of $35.00 annually

or, more precisely, $17.50 semiannually.

Current yield = Annual coupon income/price

= $35.00/$864.375 = 0.0405 = 4.05%

P = $10,000/1.02 = $9,803.92 b. c. 8.

9. The total before-tax income is $4. After the 70% exclusion for preferred stock

dividends, the taxable income is: 0.30 × $4 = $1.20

Therefore, taxes are: 0.30 × $1.20 = $0.36

After-tax income is: $4.00 – $0.36 = $3.64

Rate of return is: $3.64/$40.00 = 9.10%

10. a.

b.

c.

d. You could buy: $5,000/$67.32 = 74.27 shares Your annual dividend income would be: 74.27 × $1.52 = $112.89 The price-to-earnings ratio is 11 and the price is $67.32. Therefore: $67.32/Earnings per share = 11 Earnings per share = $6.12 General Dynamics closed today at $67.32, which was $0.47 higher

than yesterday’s price. Yesterday’s closing price was: $66.85

At t = 0, the value of the index is: (90 + 50 + 100)/3 = 80

At t = 1, the value of the index is: (95 + 45 + 110)/3 = 83.333

The rate of return is: (83.333/80) 1 = 4.17% 11. a.