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1. Trump Co, has $1000 face value (maturity value) bonds outstanding with a coupon rate of 10% and semi annual payments. The bonds mature in

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1. Trump Co, has $1000 face value (maturity value) bonds outstanding with a coupon rate of 10% and semi annual payments. The bonds mature in 25 years. Compute the current price if the interest rate on similar bonds is 6% 2. Greene corporation has preferred shares that have a dividend of $2.50 payable quarterly. If the required rate of return is 8% compounded quarterly a. Find the price of the shares. b. The following year the interest rate increases to 10% compounding quarterly what is the gain or loss on the shares 3. Benning Company has a current semi annual dividend of $.50 and a constant growth rate of 5%. a Compute the current value of the shares if Ke is 8% b. The following year growth increases to 6% and rates rise making the Ke 10% find the new value of the shares 4 WEED Corp is expected to have three years of exceptional growth with the current dividend of S 10 annually growing at 10% per year After that time, analysts expect growth to level off at 5% Find the value of the shares today if Ke is 15%

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