answer Q1,2,3

bonds and stocks valuation case

------------Bonds--------- The bonds issued by XYZ Inc. have $1,000 Par value, 5% coupon rate, and 7 years to maturity. Interest is paid annually. 1) Find the price of the bond for each of the following YTMs: 7%, 5%, and 4.25%. 2) Find YTM for each of the following bonds' prices: $1200, $1000, $875. Show calculations in details for each YTM and for each bond price. Show formula and substations. ------------- Preferred Stocks-------- The preferred stock of ABC Inc. pays a fixed dividend of $5 per share per year. What is the current fair price of the stock if required return is 10%? 12%? 15%. Show your work for each required return. ------- -------------------Common Stocks------------- The common stock of ABC Inc. has just paid a dividend of . 1) If the required return is and the growth rate is , what is the fair price of the stock? 2) If the required return is and the growth rate is , what is the fair price of the stock? 3) If the required return is and the growth rate is , what is the fair price of the stock