23. (a).Gugenheim, Inc. offers a 7 percent coupon bond with annual payments. The yield to maturity is 5.85 percent and the maturity date is 9 years. What is the market price of a $1,000 face value bond? (b) Party Time, Inc. has a 6 percent coupon bond that matures in 11 years. The bond pays interest semiannually. What is the market price of a $1,000 face value bond if the yield to maturity is 12.9 percent? 24. The current price of a 10 -year, $1,000 par value bond is $1,158.91 Interest on this bond is paid every six months, and the nominal annual yield is 14 percent. Given these facts, (a) what is the annual interest payment on this bond on this bond? (b) what is the coupon rate on this bond 25. (a) A General Co. bond has an 8 percent coupon and pays interest annually. The face value is $1,000 and the current market price is $1,020.50. The bond matures in 20 years. What is the yield to maturity - i.e. the market rate (use your financial calculator)? (b) The Lo Sun Corporation offers a 6 percent bond with a current market price of $875.05. The yield to maturity is 7.34 percent. The face value is $1,000. Interest is paid semiannually. How many years is it until this bond matures (use your financial calculator)? 26. (a) Majestic Homes stock traditionally provides an 8 percent rate of return. The company just paid a $2 a year dividend which is expected to increase by 5 percent per year. If you are planning on buying 1,000 shares of this stock next year, how much should you expect to pay per share if the market rate of return for this type of security is 9 percent at the time of your purchase? (b)The current dividend yield on Alpha's common stock is 4.8 percent. The company just paid a $2.10 dividend. The rumor is that the dividend will be $2.205 next year. The dividend growth rate is expected to remain constant at the current level. What is the required rate of return on Alpha's stock? 27. Albright Motors is expected to pay a year-end dividend of $3 a share (D1=$3.00), then a divivend of $5 in 2 years (D2=$5.00), and a did end of $7 in 3 years. After 3 years the dividend is expected to grow at a constant rate of 6% forever. If the required and expected) rate of retrun on the stock is 16%, what is the current stock price? 28. Can't Hold Me Back, Inc. is preparing to pay their first dividends. They are going to pay $1.00,$2.50, and $5.00 a share over the next three years, respectively. After that, the company has stated that the annual dividend will be $1.25 per share indefinitely. What is this stock worth to you per share if you demand a 7 percent rate of return