1.) The Mariposa Co. has two bonds outstanding. One was issued 25 years ago at a coupon rate of 9%. The other was issued 5 years ago at a coupon rate of 9%. Both bonds were originally issued with terms of 30 years and face values of $1,000. The going interest rate is 14% today. a. What are the prices (PV) of the two bonds at this time? b. Discuss the result of part a. in terms of risk in investing in bonds. face value FV coupon rate PMT original issue RATE years outstanding NPER current price PV

2.) Longly Trucking is issuing a 20-year bond with a $2,000 face value tomorrow. The issue is to pay an 8% coupon rate, because that was the interest rate while it was being planned. However rates have increased suddenly and are expected to be 9% when the bond is marketed. What will Longly receive for each bond tomorrow?

face value FV coupon rate PMT original issue RATE years outstanding NPER current price PV

3.) Hannaford is experiencing rapid growth. The company expects dividends to grow at 18 percent per year for the next 11 years before leveling off at 4 percent into perpetuity. The required return is 10 percent. If the dividend per share just paid is $1.94, what is the stock price?

4.) International Inc. just paid a dividend of $1.95. It is expected to grow its dividend at 3.15% each year thereafter. If investors require an 8% return, what is the current price?

5.) Martins Corp just paid a dividend of $1.55 per share. The dividends are expected to grow at 21 percent for the next eight years and then level off to a growth rate of 3.5 percent indefinitely. If the required return is 12 percent, what is the price of the stock today?

6.) MJ corporation has a 5% preferred selling for $64 per share. What it the required return?