1. The didend rate on a C S. is 5 7/19%, PV : 2 00, You own 4 round lots of this
ID: 2780852 • Letter: 1
Question
1. The didend rate on a C S. is 5 7/19%, PV : 2 00, You own 4 round lots of this stock How much dividend do 2. You own B bonds of Andrusco Corp. with coupon rate of 3 49%, and that you bought last year at quote 3. You have lust received drvidend check for $46.79, "n the round lot of IBM that you bought 5 years ago, at a 4. You just get a check for $400 from a company representing an interest payment. t you own 10 bonds of this you get each quarter? of 98 5/8. How much is an interest check you get? quote of e9%, if the PV of this security is SS00, what is the dividend rate on t ? company, what is the PV of this band ?Explanation / Answer
1. 4 round of shares = 4*100 = 400 shares. Dividend rate = 5 7/19 % = 102/19% = 5.37%. PV of all the shares = 400 * 2 = $800
Total Dividend from all the shares = 800 * 5.37% = $42.96, Dividend/quarter = 42.96/4 = $10.74
2. Coupon rate = 3 3/9% = 3.33%
Market value of the bond = 98 5/8 = $98.625
Interest check = 98.625*8*3.33% = $26.274
3. PV of this security = $5 bought at a quote of 89%
FV of this security = 5/0.89 = $5.618
Round lot of IBM shares = 100, Dividend = $46.79, Dividend per share = 46.79/100 = $0.4679
Dividend rate = 0.4679/5.618 = 8.33%
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