1. You own a 25-year, $10,000 par value bond paying 11% interest annually. The market price of the bond is $8,750. Compute the bond's expected rate of return

2. ExxonMobil 15-year bonds pays 7% coupon interest rate annually on a Php 25,000 par value.In addition the required rate of return is 10%. What is the value of the bond?

3. Honeywag common stock is expected to pay $1.85 in dividends next year, and the growth rate is projected to be 5%. If investors require a rate of return of 11%, what is the current value of the stock?

4. The common stock of Corby Corporation paid $1.32 in dividends last year. Dividends are expected to grow at a 6% annual rate for an indefinite number of years. a) If Corby's current market price is $23.50 per share, what is the stock's expected rate of return?

5. relative to number 4 problem, b) If your required rate of return is 10.5%, what is the value of the stock for you?

6. How many months will it take to pay off a loan of $50,000 at an annual rate of 12% compounded monthly if you make monthly payment of $600?

7. You lend friend $10,000, for which your friend will repay you $27,027 at the end of 5 years. What interest rate are you charging your friend?

8. You are considering an investment security that will pay you $1,000 in 3 years. If the appropriate discount rate is 11%, what is the value of this investment today?

9. Mr. Preston purchased a new house for $80,000. He paid $20,000 down payment and agreed to pay the rest over the next 25 years in 25 equal beginning-of-year payments plus 9% compound interest on the unpaid balance. How much will these equal payments be?

10. These are shares that represent the ownership in a corporation and with voting rights.