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A. What is the value of a 5%, $1,000 face value bond that matures is 11 years if investors require a 5% return on their
A. What is the value of a 5%, $1,000 face value bond that matures is 11 years if investors require a 5% return on their investment? B. What will be the price of a 4.6%, $1,000 face value bond seven years from today if the bond matures in 21 years and the going rate of interest for such bonds is 7%? C. What is the value of a $1,000 zero-coupon bond that matures in 26 years when the required rate of return is 11%? D. What is the yield-to-maturity of a $1,000 bond with a coupon rate of 4%, a 20 year maturity, and a current price of $1,240? E. What is the price of one share of 6% preferred stock that has a par value of $50 while investors have a required rate of return of 9%? F. What is the required rate of return on a $7 preferred stock with a market price of $67 and a par value of $50? G. Using the dividend growth model, what is the value of one share of a common stock that paid a dividend of $3.10 yesterday when investors require a 9% return on their investment and who perceive that dividends will grow at 5% per year for the foreseeable future? H. What is a stock's total rate of return if it sells for $60 in the market, paid a dividend of $3.21 yesterday, and investors anticipate the company's dividend will grow at 4% for the foreseeable future? 1. Assuming a stock sells for $71 and paid a $2 dividend yesterday, what is the stock's capital gains yield if it's dividends are expected to grow at 5.5% each year for the foreseeable future? J. What is a stock's total rate of return if it paid a dividend of $4 yesterday, sells for $39, and investers feel that dividends will grow at 6% per year for the foreseeable future
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