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19:26 al 18% Read Only - You can't save changes to this file. QUESTION FIVE (10 points) a) If a bood's coupon rate is above

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19:26 al 18% Read Only - You can't save changes to this file. QUESTION FIVE (10 points) a) If a bood's coupon rate is above is required raste of retum, would its price he above or below its par value? Explain. (2 Points b) Huskie Motor's just pridan mual dividend of $1.00 per share Management has promised shareholders to increase dividends a constant rate of 5. If the required return is 12%, what is the current price per shard Points c) The Treasury is selling day Thills with a face value of 10.000 foc 58.800. Ir the imcl holds them until marity calculate the yield 2 Points) d) Asee the following information for an existing bond that provides anal coupon payments Par value - $1,000 Coupon rato 115 4 years Required one of room by investors - 11% What is the present value of the bood? (3 Points) lll

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