1. A bond with a face value of $1000 is trading at $1213.50. Bond has a coupon of 9% with semi-annual coupon payment and with a remaining maturity of 12 years. What is the YTM on the bond? (8) What is the EAR on the bond? (4) 2. A bond with a face of $1000 has a semi-annual coupon payment. Coupon rate is 7%. If the yield to maturity on that bond is 10%, what is the current price of the bond? (8) 3. What is the price of a preferred stock with a face value of $100 that pays a dividend of 12% and the current required return is 15% ? (5) 4. X Inc. just paid a dividend of $2 and the dividends are expected to grow at the rate of 8% for an indefinite period of time and has required rate of 18%. What is the price of X Inc. four years from today? (10) 5. Taylor Inc. is a fast-growing company. It is expected to pay a dividend of $3 next year. After that, for the next four years, Taylor Inc. will grow at the rate of 25% each year. After that, the growth rate will be 7% for an infinite period of time. If the required rate is 12%, what is the current price of Taylor? (15) 1. A bond with a face value of $1000 is trading at $1213.50. Bond has a coupon of 9% with semi-annual coupon payment and with a remaining maturity of 12 years. What is the YTM on the bond? (8) What is the EAR on the bond? (4) 2. A bond with a face of $1000 has a semi-annual coupon payment. Coupon rate is 7%. If the yield to maturity on that bond is 10%, what is the current price of the bond? (8) 3. What is the price of a preferred stock with a face value of $100 that pays a dividend of 12% and the current required return is 15% ? (5) 4. X Inc. just paid a dividend of $2 and the dividends are expected to grow at the rate of 8% for an indefinite period of time and has required rate of 18%. What is the price of X Inc. four years from today? (10) 5. Taylor Inc. is a fast-growing company. It is expected to pay a dividend of $3 next year. After that, for the next four years, Taylor Inc. will grow at the rate of 25% each year. After that, the growth rate will be 7% for an infinite period of time. If the required rate is 12%, what is the current price of Taylor? (15)