1. You are considering the following AA-rated, semi-annual coupon bond issued by Mata Toys. a. Is the bond a discount or premium bond? Explain. ( 2 marks) b. What is the current bond price? (2 marks) c. Calculate its current yield. (2 marks) 2. BEE Corporation just issued some new preferred stock. The preferred stock will pay an annual dividend of $5 in perpetuity, beginning 3 years from now. If the market requires a return of 6 percent on this investment, how much does a share of preferred stock cost today? (4 marks) 3. Suppose MAZ Inc., just paid a dividend of $3 per share. It is expected that the dividends will grow at a constant rate of 4 percent per year indefinitely. If investors require a 9 percent return on MAZ stock, a. What is the current price today? (2 marks) b. What will the price be in five years? (2 marks) 4. GTP Inc. stock is selling for $50 per share. The next dividend will be $1.80 per share, and the dividend is expected to grow at 6 percent forever. What is the dividend yield? The capital gain yield? The total required return? (4 marks) 5. CXB Inc. will pay a dividend of $2 per share next year. Dividends are expected to grow at a rate of 6% until the end of year 4 , and will grow at a constant rate of 3% thereafter. What is the current share price of the common stock if investors require a return of 12% on common stock? ( 8 marks)