Bonds X and Y are identical, including the risk class. The only difference between A and B is in the coupon payment as shown below.

Bond XBond YFace value $1,000 $1,000

Annual Coupon Payment$120 $130

Payment Frequency Semiannual Annual

Years to maturity 15 15

Price $934.71 ?

What is the price of bond Y?

A.$989.75

B.$973.44

C.$940.92

D.$956.95

E.$925.88

F.$1,007.15

Sanaponic, Inc. will pay a dividend of $6 for each of the next 3 years, $8 for each of the years 4-7, and $10 for the years 8-10.Thereafter, starting in year 11, the company will pay a constant dividend of $10/year forever.If you require 22 percent rate of return on investments in this risk class, how much is this stock worth to you?

The Bank of Fast Loans uses the following rating scheme to classify the riskiness of its customers.

Risk Class Risk Premium (%) Prime .05 High grade 1.0 Upper medium grade 1.5 Lower medium grade 2.0 Speculative: Non-investment grade 4.0 Speculative: Highly 6.0 Substantial risks 9.0 Extremely speculative 12.0

The bank's pure rate of interest is 2% and the inflation premium is 3.5%.

The bank offers an annual rate of 7.68% to a customer. What is the risk class of this customer? A. Lower medium grade

B. Speculative: Non-investment grade

C. Upper medium grade

D. Substantial risks

E. Speculative: Highly

F. High grade