bài thi giữa kì

1.  Calculate the present value of each cash flow using a discount rate of 6.5%. Which do you most
prefer most?

 Cash flow A: receive $60 today and then receive $50 every year for next five years.

 Cash flow B: receive $12 every year, forever, starting today.

 Cash flow C: pay $50 every year for five years, with the first payment being next year, and then
subsequently receive $40 every year for 20 years.

2.  Xiaomi is considering to invest 25 million USD to open 3 new stores in Vietnam. The Board of
Director forecasts the net profit of EACH store is 1.5 million USD for the 1st year, 0.5 million USD
for the second year, -0.5 million USD for the 3rd year and 2.5 million USD for the 4th year. The
opportunity costs or the required rate of return of this project is 10% per year. Should the company
accept this investment project?
3.  FPT Corporation has just paid a dividend of $2.50 per share. The dividends are expected to
grow at 14% per year for the next two years and at 6% per year thereafter. If the required rate of
return in the stock is 20%. Calculate the current value of the stock?
4.  Consider a 5-year, 7% coupon bond with a face value of $1,000. Assume that all market interest
rates are 10%. 

 a.  If the currently price of this bond is $871.65. Should you buy the bond? Why or why not?

 b.  Calculate the expected price change when interest rates increase 1% using the duration
approximation?

5.  TDTU's is going to pay $2, $3.50, and $4 a share over the next three years, respectively. After
that, the company plans to pay annual dividends of $1.25 per share indefinitely. If your required
return is 10 percent, how much are you willing to pay for one share today?
6.  We have the information of following bonds on the market (Please round up to 0 decimal
number)

 Bond A: YTM = 5.00%, Maturity = 6 years, Coupon = 6% pay annually, Par Value = $1,000

 Bond B: YTM = 7%, Maturity = 7 years, Coupon = 10% pay annually, Par Value = $1,000

A.Calculate the present value of bond A and bond B

B.If next year, the YTM decrease by 1%, which bond is more sensitive to an interest rate change?
BÀI GIẢI