6. You want to buy a corporate bond for your portfolio. It is a typical 10 year, $1,000 par value, semi-annual coupon paying bond. The annual coupon rate is 6%. It has been four years since it was issued. The bond is currently trading at 101.5. (10 pt.s) What is the bond's yield to maturity? If the company has the option to call the bond after 8 years at 103, what is the yield to call? Would the bond be called? Please explain. 7. Hi-yield inc. is currently paying a $2.50 quarterly dividend on shares of its stock. Hi-yield paid a $1.80 quarterly dividend six years ago. The dividend has grown at a consistent rate and is expected to continue doing so. The current required rate of return on Hi-yield is 12%. Hi-yield has 400,000 shares of common stock outstanding. What is the value of Hi-yield's equity? (8 pt.s) 9. You are 21 and want to retire at the age of 65. Starting on your retirement date you'd like to have an annuity paying $50,000 per year until you are 85. Your uncle is giving you $10,000 this year to get you started on your savings. How much more would you need to save each year to finish funding your retirement? Interest rates are 6%. (12 pt.s)