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1 2 3 18.30 percent; accept 21.08 percent; reject 4 5 6 Question 13 (4 points) What is the value of a 17 year 0-coupon

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1 2 3 18.30 percent; accept 21.08 percent; reject 4 5 6 Question 13 (4 points) What is the value of a 17 year 0-coupon bond with a yield to maturity quoted rate) of 5.9 % and a maturity value of $1000? Assume semi-annual compounding of Interest. Calculate your answer to the nearest $.01. Enter your answer as a postive number 7 8 9 10 11 12 Your Answer 13 14 15 Answer 16 17 18 19 20 21 Question 14 (4 points) The stock of Robotic Atlanta Inc. is trading at $ 24.91 per share. In the past, the firm has paid a constant dividend of $ 5.33 per share and it has just paid an annual dividend (.e., DO - 5.33 ). However, the company will announce today new investments that the market did not know about. It is expected that with these new investments, the dividends will grow at 3.3 % forever. Assuming that the discount rate remains the same, what will be the price of the stock after the announcement? Your Answer: $ 4 % 5 6 7 9 O 2 3 P E Y 70 T Q G H K J L D A S

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