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A European bond paying annual coupons of 6% offers a yield of 10% pa.

Convert the yield into an effective monthly rate, an effective annual rate and an effective daily rate. Assume that there are 365 days in a year.

All answers are given in the same order:

$$r_\text{eff, monthly} , r_\text{eff, yearly} , r_\text{eff, daily}$$

A 10 year bond has a face value of 100, a yield of 6% pa and a fixed coupon rate of 8% pa, paid semi-annually. What is its price? One formula for calculating a levered firm's free cash flow (FFCF, or CFFA) is to use net operating profit after tax (NOPAT). \begin{aligned} FFCF &= NOPAT + Depr - CapEx -\Delta NWC \\ &= (Rev - COGS - Depr - FC)(1-t_c) + Depr - CapEx -\Delta NWC \\ \end{aligned} \\ Does this annual FFCF or the annual interest tax shield? Which of the following is the least useful method or model to calculate the value of a real option in a project? The perpetuity with growth formula, also known as the dividend discount model (DDM) or Gordon growth model, is appropriate for valuing a company's shares. $P_0$ is the current share price, $C_1$ is next year's expected dividend, $r$ is the total required return and $g$ is the expected growth rate of the dividend. $$P_0=\dfrac{C_1}{r-g}$$ The below graph shows the expected future price path of the company's shares. Which of the following statements about the graph is NOT correct? An Indonesian lady wishes to convert 1 million Indonesian rupiah (IDR) to Australian dollars (AUD). Exchange rates are 13,125 IDR per USD and 0.79 USD per AUD. How many AUD is the IDR 1 million worth? The current gold price is700, gold storage costs are 2% pa and the risk free rate is 10% pa, both with continuous compounding.

What should be the 3 year gold futures price?

Which of the below statements about utility is NOT generally accepted by economists? Most people are thought to:

Question 831  option, American option, no explanation

Which of the following statements about American-style options is NOT correct? American-style:

Which of the following statements about Macaulay duration is NOT correct? The Macaulay duration: