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4. Treasury Bond A ten-year U.S. Treasury bond with a face value of $10,000 has a coupon rate of 5%; coupon payments are made semi-annually.

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4. Treasury Bond A ten-year U.S. Treasury bond with a face value of $10,000 has a coupon rate of 5%; coupon payments are made semi-annually. If the bond yield is 3.4% per year, what is the price of the bond? 5. Bond Price and Bond Yield A 15-year corporate bond has a face value of $1,000 anda coupon rate of 6%; coupon payments are annual. a. If the bond yield is 68, what is the price of this bond? b. If the bond yield is 4%, what is the price of this bond? c. If the bond yield is 88, what is the price of this bond? 6. Bond Duration is 58. duration of this bond? duration of this bond? 7. Common Stock Price An 8-year bond has a face value of $1,o00. The bond yield a. If this bond has a coupon rate of 0%, what is the b. If this bond has a coupon rate of 108, what is the A common stock will pay a dividend next year (i.e., at t=1) of $3.00; at t=2, the expected dividend is $3.50. After t=2 dividends are expected to grow at a constant rate of 2% per year, forever. If the appropriate rate of return is 10%, what is the price of the common stock? 8. Common Stock Price A common stock will pay a dividend next year (i.e., at t=1) of $5.00. For two years after that (i.e., for t-2 and t=3), the dividend will grow at 10% per year. After t=3, the dividend will grow at 38 per year, forever. If the opportunity cost of capital is 158, what is the price of the common stock

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