3.) Texas Instruments, Inc. has a bond issue outstanding that pays $140 every year. It has a face value (par value) of $1,000 and will mature in three years. Similar bonds are priced to yield 6% per year. What would you expect this bond to sell for? A. $1,214 B. $1,000 C. $840 D. $1124 E. $814 F. $1,140 G. $1,327 Answer: 4) The dividend on Dell Corp common stock will be $6 in 1 year (1 year from today), $6.50 in 2 years (2 years from today), and $7 in 3 years. You know that you can sell the stock for $75 in 3 years. You require a 10% return on your investment. How much would you be willing to pay for a share of this stock (today)? a. $88.50 b. $64.65 c. $65.40 d. $72.43 e. $18.72 f. $93.72 g. $56.34 PLEASE GIVE THE BEST RESPONSE. There are 4 questions. 1) All else being equal, if interest rates decrease (in other words, market rates go down), then bond prices will fall. A. TRUE B. FALSE Answer: 2) Consider a HP bond with a market price of $918, a face value of $1,000, maturity of 5 years and a coupon rate of 5%. What is the return the market wants on this HP bond? A. 7% B. 7.5% C. 8% D. 8.5% E. 9% F. 9.5% G. 6.5% Answer: .2 3.) Texas Instruments, Inc. has a bond issue outstanding that pays $140 every year. It has a face value (par value) of $1,000 and will mature in three years. Similar bonds are priced to yield 6% per year. What would you expect this bond to sell for? A. $1,214 B. $1,000 C. $840 D. $1124