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1) Facebook issued 10-year bonds with a par value of $1,000 and a coupon rate of 8%. 1) Suppose that the coupon is paid annually

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1) Facebook issued 10-year bonds with a par value of $1,000 and a coupon rate of 8%. 1) Suppose that the coupon is paid annually and the yield to maturity on this bond is 10%. Figure out the bond price. (30points) II) Suppose that the coupon is paid semiannually and the yield to maturity is 9%. Figure out the bond price. (30points) III) Figure out the yield to maturity if the bond price is $1,020 for the 10-year bond with a par value of $1,000 and a coupon rate of 8% paid annually. (30points) 2) Google has just paid a dividend of $5.00 on its stock. Its dividends are expected to grow at a 20 percent rate for the next two years (Year 2021 and 2022), with the growth rate falling off to a 10 percent thereafter (from Year 2023). 1) What is the dividend at Year 2023? (30points) II) Given the required return of 30 percent, figure out the stock price in 2022 (SP) (30points) IIT) Given the required return of 30 percent, figure out the stock price in 2020 (SP) based on both the stock price at Year 2022 and dividends at Year 2021 and 2022. (30points)

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