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1.Based on the following information, answer the questions. 1) Facebook issued 10-year bonds witha par value of $1,000 and a coupon rate of 8%, paid

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1.Based on the following information, answer the questions. 1) Facebook issued 10-year bonds witha par value of $1,000 and a coupon rate of 8%, paid semiannually Suppose that the yield to maturity on this bond is 10 % . Is the bond price greater or less than $1,000? You can use the relationship between the coupon rate and the yield to maturity. (30points) I) II) Suppose that the yield to maturity is 9%. Given the same information, figure out the bond price. (30points) III) Figure out the yield to maturity if the price is $990 for the 10-year bond with a par value of $1,000 and a coupon rate of 8% paid semiannually. (30points) 2) Google will pay its dividends of $6 in 2020 and $7 in 2021. It plans to pay a constant dividend of $8 from 2022 permanently. Given the required return of 20 percent, figure out the stock price in 2021 (SP). (30points) (You don't have to calculate the dividend growth rate. Please use the current dividend information) I) II) Given the required return of 20 percent, figure out the stock price in 2019 (SPo) based on both the stock price at Year 2021 and dividends at Year 2020 and 2021. (30points) 1.Based on the following information, answer the questions. 1) Facebook issued 10-year bonds witha par value of $1,000 and a coupon rate of 8%, paid semiannually Suppose that the yield to maturity on this bond is 10 % . Is the bond price greater or less than $1,000? You can use the relationship between the coupon rate and the yield to maturity. (30points) I) II) Suppose that the yield to maturity is 9%. Given the same information, figure out the bond price. (30points) III) Figure out the yield to maturity if the price is $990 for the 10-year bond with a par value of $1,000 and a coupon rate of 8% paid semiannually. (30points) 2) Google will pay its dividends of $6 in 2020 and $7 in 2021. It plans to pay a constant dividend of $8 from 2022 permanently. Given the required return of 20 percent, figure out the stock price in 2021 (SP). (30points) (You don't have to calculate the dividend growth rate. Please use the current dividend information) I) II) Given the required return of 20 percent, figure out the stock price in 2019 (SPo) based on both the stock price at Year 2021 and dividends at Year 2020 and 2021. (30points)

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