1. An issue of $1,000 face value, 6% coupon bonds that mature in 22 years.

What is the value of one such bond if investors require a rate of return of 6%? ___________

2. An issue of $1,000 face value, 3% coupon bonds that mature in 25 years.

Calculate the price of these bonds 15 years from now if market rates at that time are at 6%. ____________

3. An issue of $1,000 face value, zero coupon bonds which mature in 25 years.

What is the value of one such bond if investors require a rate of return of 4.5%? ____________

4. An issue of $1,000 face value, 7% coupon bonds which mature in 19 years.

Calculate the bond's yield-to-maturity if its current market price is $1,260. ___________

5. An issue of 6% preferred stock with a par value of $50.

Calculate the price of one share of such stock when investors require a rate of return of 8%. ___________

6. An issue of $5 preferred stock with a par value of $30.

Calculate the required rate of return on such stock if its market price is $57. __________

7. An issue of common stock that paid a dividend yesterday of $2.40.

Calculate the value of one share of this stock to an investor who requires a 10% rate of return and who forecasts that the company's dividends will grow at a constant annual rate of 4%. ___________

8. An issue of common stock that paid a dividend yesterday of $3.70, and is currently priced at $50 per share.

Calculate this stock's current dividend yield for the coming year if investors anticipate the company's dividends to grow for the foreseeable future at a rate of 5%. _____________

9.An issue of common stock that paid a dividend yesterday of $2.15, and is currently priced at $70 per share.

Calculate this stock's capital gains yield if investors anticipate the company's dividends to grow for the foreseeable future at a rate of 4%. _____________

10. An issue of common stock that paid a dividend yesterday of $4.71, and is currently priced at $62 per share.

Calculate this stock's total rate of return if investors anticipate the company's dividend to grow for the foreseeable future at a rate of 5%. _____________