(Bond prices and maturity) Compare the 9 5/8% coupon bonds of ExxonMobil Corp. which mature in 8 years with those of Verizon Corp. which mature in 29 years. Both have a $1,000 face value.

a. Calculate each bonds price if investors require a rate of return of 9 5/8%.

b. Calculate each bonds price if investors require a rate of return of 6%.

B. (Zero-coupon bond) Allied Chemical Corporation has outstanding an issue of $1,000 face value zero coupon bonds that mature in ten years. Calculate the value of one bond to an investor who requires a rate of return of:

a. 9%

B. 11%

C. (Yield-to-maturity) Citigroup has outstanding an issue of $1,000 face value, 8.45% coupon bonds that mature in 16 years. Calculate the bonds yield-to-maturity if its current market price is:

a. $ 800

b. $1,000

D. (Holding-period yield) Assume you purchase one Citigroup bond of Problem 10, hold it for two years, and then sell it for $1,200. For each of the four purchase prices given, calculate your holding-period yield

E (Preferred stock value) Ohio Edison preferred stock pays an annual dividend of $7.36 per share. Calculate the value of one share to an investor who requires a rate of return of:

a. 5%

c. 11%

F. (Preferred stock yield) Calculate the yield of the Ohio Edison preferred stock of Problem 14 if its market price per share is:

a. $60

b. $80

G. (Common stockconstant growth) The common stock of the Seagrams Company pays an annual dividend of CAD2.12 (Canadian dollars) per share. Calculate the value of one share to an investor who requires a 12% rate of return and who forecasts that Seagrams dividends will grow at a constant annual rate of:

a. ?5%

b. 0%

H(Common stockrate of return) The stock of the CocaCola Corporation recently paid an annual dividend of $1.08 per share. Investors anticipate the companys dividend will grow at a 10% rate for the foreseeable future. Calculate the stocks dividend yield, capital gains yield, and total rate of return if one share of CocaCola stock is currently selling for:

a. $45

b. $60