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Aerox has an 9% semi-annual coupon bond that has a remaining maturity of 15 years, The bond is callable in five years at a price

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Aerox has an 9% semi-annual coupon bond that has a remaining maturity of 15 years, The bond is callable in five years at a price of $1,100. Its current price is $1,275. (20 points) a. If the required return for this bond is 9.5% (assuming it is not callable), what would be the value of the bond? b. What is the yield to maturity (based on its current market price)? C. What is the yield to call? d. Would you buy this bond? 6. Given the following data: (5 points) Beta = 1.3, T-Bond Yield (TRF) = 6%, Market Risk Premium(rm-TRF) = 9%, What is the firms cost of Kj using the CAPM? 7. Molen Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $7.00 per share. If the required return on this preferred stock is 4.25%, at what price should the stock sell? (5 points)

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