#2 & #23

2. Applied Software has $1,000 par value bonds outstanding at 12 percent interest. The bonds will mature in 25 years. Compute the current price of the bonds if the present yield to maturity is: a. 11 percent. b. 13 percent. C. 16 percent. 000 Barry's Storoide 3 8 percent, what will be the new price of the bonds? 23. The preferred stock of Denver Savings and Loan pays an annual dividend of $5.60. It has a required rate of return of 8 percent. Compute the price of the preferred stock. 24. Bedford Mattress Company issued preferred stock many years ago. It carries a frund divi 500 With the man of time vialde have gone down Preferred stock value (L04) Preferred stock valua