1. What is the value to you of a 9 percent coupon bond with a par value of $10,000 that matures in 10 years if you want a 7 percent return? Use semiannual compounding. 2. What would be the value of the bond in Problem 1 if you wanted an 11 percent rate of return? 3. The preferred stock of the Clarence Radiology Company has a par value of $100 and a $9 dividend rate. You require an 11 percent rate of return on this stock. What is the maximum price you would pay for it? Would you buy it at a market price of $96? 4. The Baron Basketball Company (BBC) earned $10 a share last year and paid a dividend of $6 a share. Next year, you expect BBC to earn $11 and continue its payout ratio. Assume that you expect to sell the stock for $132 a year from now. If you require 12 percent on this stock, how much would you be willing to pay for it? 5. Given the expected earnings and dividend payments in Problem 4, if you expected a selling price of $110 and required an 8 percent return on this investment, how much would you pay for the BBC stock? 6. An investor is convinced that the stock market will experience a substantial increase next year because corporate earnings are expected to rise by at least 12 percent. Do you agree or disagree? Why or why not? 2. Find at least three sources of historical information on nominal and real GDP. Find two sources of an annual estimate of nominal GDP