Question
6. What is the amount of the annual coupon payment for a bond that has 6 years until maturity, sells for $1,050, and has a
6. What is the amount of the annual coupon payment for a bond that has 6 years until maturity, sells for $1,050, and has a yield to maturity of 10.5%?
7. What happens to the price of a 3-year bond (with par value $1,000) with an 8% coupon when interest rates change from 4 to 7%?
8. If next year's dividend is forecast to be $12.00, the constant-growth rate is 4.5%, and the discount rate is 12%, then the current stock price should be:
9. What constant-growth rate in dividends is expected for a stock valued at $50.00 if next year's dividend is forecast at $2.00 and the appropriate discount rate is 13%?
What is the coupon rate of a bond which has a price of $1100, Yield to Maturity of 14%, matures in 5 years and makes semi-annual coupon payments?
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