a.Sandra Robinson wants to invest in four-year bonds that are currently priced at $859.06. These bonds have a coupon rate of 5.8 percent and make semiannual coupon payments. What is the current market yield on this bond?(Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final answer to 2 decimal places, e.g. 15.25%.)

Current market Yield $ _____________________

b.The First Bank of Flagstaff has issued perpetual preferred stock with a $100 par value. The bank pays a quarterly dividend of $1.60 on this stock. What is the current price of this preferred stock given a required rate of return of 12.5 percent?(Round answer to 2 decimal places, e.g. 15.25.)

Current Price $ ________________

c.Blossom Real Estate Company management is planning to fund a development project by issuing 10-year zero coupon bonds with a face value of $1,000. Assuming semiannual compounding, what will be the price of these bonds if the appropriate discount rate is 9.0percent?(Round answer to 2 decimal places, e.g. 15.25.)

Price Of bond $________________

d.Ivanhoe Inc. has seven-year bonds outstanding that pay a 11 percent coupon rate. Investors buying these bonds today can expect to earn a yield to maturity of 6.950 percent. What is the current value of these bonds? Assume annual coupon payments.(Round answer to 2 decimal places, e.g. 15.25.)

Current Value $____________

e.Richard Miller is interested in buying the stock of First National Bank. While the bank's management expects no growth in the near future, Richard is attracted by the dividend income. Last year the bank paid a dividend of $6.37. If Richard requires a return of 14.0 percent on such stocks, what is the maximum price he should be willing to pay for a share of the bank's stock?(Round answer to 2 decimal places, e.g. 15.25.)

Maximum Price $________________