10. A bond with a par value of $1,000 matures in 17 years, pays interest semiannually, and has a coupon rate of 6.35 percent. What is the price of this bond if the market rate is 6.5 percent?

14. A firm recently paid an annual dividend of $2.78. This dividend increases at 1.65 percent per year and currently sells for $42.19 a share. What is the rate of return?

15. A preferred stock pays an annual dividend of $6.20 a share. What is the maximum price you should pay today to purchase this stock if you require a rate of return of 14.25 percent?

18. Company J announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $.59 a share. Subsequent dividends will be $.64, $.79, and $1.09 a share annually for the following three years, respectively. After that, dividends are projected to increase by 3.9 percent per year.

1. How much are you willing to pay today to buy one share of this stock if your required rate of return is 13 percent?
2. Based on the price you calculated in part a, what will the expected dividend yield be next year?
3. If the growth rate in dividends increased from 3.9 to 5 percent would the price increase or decrease?
4. If required return decreased, would price increase or decrease?