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A 4.25% coupon bond is currently yielding 4.5%. If the par value of this bond is $1,000, what is the annual coupon payment? If the


 A 4.25% coupon bond is currently yielding 4.5%. If the par value of this bond is $1,000, what is the annual coupon payment? 

 If the par value of a 3% semi-annual coupon bond is 500,000 yen, what is the payment received every six months? 

 If the risk-free rate is 5% and a security is yielding 9%, what is the risk premium? 

A bond was issued one year ago at par with a 4% semi-annual coupon. Today the YTM is 5%, what should be its price?



 A stock is expected to pay $1 in dividends next year. Dividends are expected to grow in future years at a rate of 5% per year. If the market demands a return of 11%, at what price should the stock trade? If the market demanded return drops to 10%, at what price should the stock trade?

  A stock paid $1.50 in dividends last year. The dividends have been growing by 3% on average over the past 10 years, and this trend is expected to continue indefinitely. If other comparable stocks are returning 9%, at what price should the stock trade? 

GHI Ltd. is not currently paying a dividend. In five years, it expects to pay a dividend of $0.50, and dividends are expected to grow at 6% a year afterward. If the return demanded is 12%, what should GHI be worth today?

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