1 6. what is the value of a 7% semi-annual coupon bond that matures in 8 years if rates move to 6.5%? a. 1030.81 b. 100 c.1030.44 d. 1020.52 17, lf ' buy a bond for 1100 and it pays a 5% coupon paid semiannually and matures in 10 years, what is the YTM? a. 596 b. 4% c. 3.78% d.3.79% 18. You are valuing a dividend paying stock with the following data: Growth rate yr 1-496 Growth rate yr2 is 3% Growth rate after yr 2 is 2% indefinitely Dividend now is $1 Required return on equity-8% Create an excel model/formulas to value this stock Extra credit 19 If I wanted to hedge 100 shares of stock with options what should I do? 20 Say a stock falls to $20 a share and I buy a call option for $2 with a strike price of $20 and the stock closes at $25 when the option expires. How much will I make with 1 call option