If you expect to earn 6.1% on your investments?

Learning Goal: I’m working on a management question and need support to help me learn.On October 30, 2015, Altria Group will issue a 5% coupon bond with $1000 par value and semiannual coupon payments. The bonds will mature on October 30, 2025. Based on the prices of bonds with similar risk characteristics, you have determined that the bonds should have a yield to maturity of 5.81%. What is the maximum price you would pay for the bond at the time of issuance? (5 points)
You just turned 30 years old, and decided that it is time to start saving for retirement. Based on your anticipated income and expenses, you expect to be able to invest $4,000 each year until you are 50 years old, and then $5,000 each year until you retire at age 65. Assume each payment/saving is at the end of the year. (30 points)You expect to earn 6.1% on your investments. What is the expected value of your retirement account at age 65?
During retirement, you expect to spend about $160,000 per year. You expect to live until you are 85 years old, and will continue to earn 6.1% on your remaining investments until you die. How much do you need to have saved at age 65 to fund your retirement? Is your retirement completely funded by your investments? If not, what is the difference?
You just received a large inheritance. If your retirement is not completely funded by your investments, how much of the inheritance do you need to set aside now (at age 30) to fund the remainder of your retirement needs, if you expect to earn 6.1% on your investments?
(Hint: for the time period 30-50, take N=20; for the time period 50-65, take N=15, etc.)
IBM just paid a dividend of $1.6 per share. You expect IBM’s dividend to grow at a rate of 9% per year for the next three years, and then you expect constant dividend growth of 4% forever. Based on the risk of IBM stock, you require a return of 13%. Using the dividend discount model, what is the value of IBM stock? (15 points)
4. You can form a portfolio of two assets, A and B, whose returns have the following characteristics:Stock Expected Return Standard Deviation Correlation A10% 20% 0.5B 15% 40%If you demand an expected return of 12%, what are the portfolio weights? What is the portfolio’s standard deviation? (10 points)
Requirements: just answer

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more