1. A coupon bond that pays interest annually has a par value of $1000, matures in 6 years, and has a yield to maturity of 6%. If the coupon rate is 15%, the value of the bond today will be __________. Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer."

10 points

QUESTION 2

1. "A coupon bond that pays interest quarterly has a par value of $1000, matures in 4 years, and has a yield to maturity of 15%. If the coupon rate is 8%, the value of the bond today will be __________. Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer."

10 points

QUESTION 3

1. "What is the coupon payment of a 4-year $1000 bond, 9% YTM, and with a 2% coupon rate and semiannually payments? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer."

10 points

QUESTION 4

1. "Consider a zero-coupon bond with $100 face value and 5 years to maturity. If the YTM is 7%, this bond will trade at a price of ________.Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer."

10 points

QUESTION 5

1. "What is the coupon rate of a 8-year, $1000 bond with coupons paid semiannually and a price of $750, if it has a yield to maturity of 12%? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, write enter 0.05 as an answer."

10 points

QUESTION 6

1. "A Company has a bond outstanding with a face value of $10000 that reaches maturity in 5 years. The bond certificate indicates that the stated coupon rate for this bond is 4% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the bond is 2.5%, then the price that this bond trades for will be closest to ________. Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer."

10 points

QUESTION 7

1. "Company A has a current stock price of $100 and is expected to pay a $7 dividend in one year. The equity cost of capital is 5%. What price would its stock be expected to sell for immediately after it pays the dividend? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer."

10 points

QUESTION 8

1. "Company B is expected to pay dividends of $1 every 6 months for the next 10 years. If the current price of Company B stock is $20, and Company B's equity cost of capital is 15%. What price would you expect the stock to sell for at the end of 10 years? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer."

10 points

QUESTION 9

1. "Company C pays a dividend of $5 per share and is expected to pay this amount indefinitely. The equity cost of capital is 10%. What is the price of the stock? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer."

10 points

QUESTION 10

1. "A stock is bought for $59 and sold for $62 1 year later, immediately after it has paid a dividend of $3. What is the capital gain rate for this transaction? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer."

10 points

QUESTION 11

1. "Company D is expected to pay a dividend of $4.5 once a year. It is expected to sell for $40 1 year from today. The equity cost of capital is 19%. What is the expected capital gain rate from the sale of this stock 1 year from today? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer."

10 points

QUESTION 12

1. "A stock is expected to pay $5 per share every year indefinitely. The current price of the stock is $1000. The equity cost of capital for the company is 10%. What price would an investor be expected to pay per share 6 years into the future? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer."

10 points

QUESTION 13

1. "Company Z is expected to pay a $3 dividend at the end of this year. You expect Company Z's dividend to grow by 7.5% per year forever. Company Z's equity cost of capital is 20% What is the value of a share of Company Z's stock? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer."

10 points

QUESTION 14

1. "Company E has a dividend yield of 7.5% and a cost of equity capital of 9.5%. Company E's dividends are expected to grow at a constant rate indefinitely. What is the growth rate of the dividends of Company E's stock? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer."

10 points

QUESTION 15

1. "Company F will have earnings per share of $2 this year and expect that they will pay out $1 of these earnings to shareholders in the form of a dividend. Company F's return on new investments is 6% and their equity cost of capital is 9%. The expected growth rate for Company F's dividends is ________. Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer."