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A bond with a coupon rate of 7.30% has a price that today equals exist868.92. The exist1,000 face value bond pays coupon every 6 months,

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A bond with a coupon rate of 7.30% has a price that today equals exist868.92. The exist1,000 face value bond pays coupon every 6 months, 30 coupons remain, and a coupon was paid yesterday. Suppose you buy this bond at today's price and hold it so that you receive 20 coupons. You sell the bond upon receiving that last coupon. Find the selling price if the bond's YTM remains constant. A bond with annual coupon rate of 5.10% and price of exist1, 090 just yesterday paid a coupon. A total of 23 coupons remain to be paid. Suppose you buy the bond at today' s price, hold it and receive 8 coupons, and then sell the bond. If at the time you sell the bond its YTM has decreased a total of 50 basis points, find the selling price of the bond. (FYI: 0.01 = 1% = 100 basis points: use semiannual compounding) The Company dividend appears to grow smoothly at a constant rate of 5.5%. Analysts forecast that next year's dividend should equal exist3.8. Investors require 14% return on this class of stock. What would be the price in 7 years? Use annual compounding. The company yesterday paid their annual dividend of exist2.00 and the expected price in 2 years is exist100. The dividend payment is expected to grow at 7%. i) What is the stock's required return? ii) what is the price today? Use annual compounding The company stock increases dividend by 5% each year and the expected dividend in 5 years is exist5. Analysts expect that investors would require 10% return on this stock. The company will cease paying dividend after the 5^th dividend (dividend in year 5). That is, the firm will pay 5 dividends annually and from year 6 shareholders will not receive any further dividend. Find the share price today. Use annual compounding

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