1. International Cruise Lines sold a bond issue with 12-year maturity to build new ships. The bonds have a stated coupon rate of4.5%. As an investor, you would like to earn a rate of return of 9.5%. How much should you be willing to pay for one of these bond? 2. Podunk Comm. bonds mature in 6 years and pay a coupon rate of 11%. Investors can currently invest in other bonds in the market and earn a return of6%. If the bonds were issued 9 years ago, what is the value of one of these bonds today? 3. Ten years ago, WalMart Corporation issued bonds with a maturity of 30 years and a coupon rate of 6%. These bonds are now selling for $840. If you purchase these bonds at the market price, what YTM will you be earning? 4. You are thinking of buy a San Antonio municipal bond in order to avoid paying taxes. These bonds have a maturity remaining of 8 years and were originally issued with a coupon rate of 3.5%. Current bond quotes show a price of 105 for these municipal bonds. What will be your total return (YTM) if you purchase the bonds? 5. The S&P 500 is currently showing a market return of 13.5%. Treasury bonds are currently yielding 3% while municipal bonds are averaging 5% and corporate bonds are averaging 8% ZLA stock has recently shown a historical return of 15%, a beta of 1.2, and a standard deviation of9%. What is the required return for this stock? 6. MGM common stock is currently selling for $50 and recently paid out a dividend of $4. The S&P is currently returning 12% which results in a required return for MGM stock of 10%. Based on past revenue growth, dividends are expected to grow at a constant rate of 5% indefinitely. How much should you pay for this stock? 7. Amazon stock recently sold for S200 and is expected to pay out a dividend of $8 at the end of the year. Based on historical returns, this stock is estimated to have a beta of 1.4 anda historical return of 10%. If dividends are expected to grow at a constant rate of 2% and an investor requires a return of 12% based on risk, how much is this stock worth today