Question
43. Home and Hardware, Inc. recently issued a bond with a $20,000 par or face value. The bond has a six-year life and a coupon
43. Home and Hardware, Inc. recently issued a bond with a $20,000 par or face value. The bond has a six-year life and a coupon interest rate of 4%. Assume that the required return on the market for this bond is 10%. Given this information, calculate the market value of this bond today. The bond pays interest annually.
44. Family Foods, Inc. has a preferred stock issue outstanding that has a par value per share of $65.00. This preferred stock pays an annual divided that is 8% of its par value. Calculate the annual dividend paid per share on this preferred stock.
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