Question
A firm has a current credit rating of the AAA. Its $1000 par value five year bond pay a 6% coupon. If the current market
A firm has a current credit rating of the AAA. Its $1000 par value five year bond pay a 6% coupon. If the current market for AAA rated that is 9% how much would you be willing to pay for one of these bonds? $883.31, $828.81, $1194.25, $1000
A common share stock just paid a dividend of $1.75. Investors are willing to pay $32 and expect the stock to grow at a constant 3.6%. How much would an investor earn?
9.27%, 9.47%, 9.07%, 9.18%, or 8.81%
A firm issues $1000 per value, 15 year Bonds pay 7% semi annual coupon. If the current market for debt of this type is 6% how much would you be willing to pay for one of these bonds?
$1098, $1024.87, $1784.02, $1000, or $1097.12
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