Author Question: Complete the following zero-coupon amortization schedule. T (Periods) Beginning Price Interest ... (Read 34 times)

rlane42 · **on:** Jul 10, 2018

Complete the following zero-coupon amortization schedule.

T (Periods) Beginning Price Interest Earned (8) Ending
Price
1 63.51 857.34
2 68.59
3 925.93 1,000.00

What will be an ideal response?

Question 2

Given the following information, calculate the expected capital gains yield for Chicago Bears Inc.:
beta = 0.6; Km = 15; Krf = 8; D1 = 2.00: Po =25.00. Assume the stock is in equilibrium and the exhibits constant growth.

A) 3.8
B) 0
C) 8.0
D) 4.2
E) 12.2

juiceman1987 · **Reply #1 on:** Jul 10, 2018

Answer to Question 1

Answer:

T (Periods) Beginning Price Interest Earned (8) Ending
Price
1 793.83 63.51 857.34
2 857.34 68.59 925.93
3 925.93 74.07 1,000.00

Answer to Question 2

D