A perpetual bond has a P10,000 face value and provides an 10% annual coupon. The appropriate discount rate is 12%. What is the value of the bond?

2. A coupon bond has a P10,000 face value and provides an 10% annual interest for 30 years. The appropriate discount rate is 12%. What is the value of the bond?

3. A bond has a P10,000 face value and provides an zero interest for 30 years. The appropriate discount rate is 12%. What is the value of the bond?

4. A common stock has no growth rate. Each share of stock just received an annual dividend of P2.00. The appropriate discount rate is 10%. What is the value of the common stock?

5. A common stock has an expected dividend growth rate of 10%. Each share of stock will receive an annual P3.24 dividend. The appropriate discount rate is 15%. What is the value of the common stock?

 
6. A 20-year bond has a coupon rate of 8 percent, and another bond of the same maturity has a coupon rate of 15 percent. If the bonds are alike in all other respects, which will have the greater relative market price decline if interest rates increase sharply? Why?