Cherry Custom Cabinetry, a small, publicly held company, issued a bond which has 13 years remaining to maturity (round to the nearest whole number if necessary). It pays coupon interest at an annual rate of 6.90%. As a small company and its associated risk, investors require 10% return on the bond. Assume face value of $1,000 to be paid at maturity. Compute the value of this bond today using annual compounding. (7 pts) Answer: Your credit card company charges interest at the rate of 21.14% per year on outstanding balance but interest is charged monthly. Compute the effective rate of interest you are actually paying using monthly compounding. Express the result in percent and keep two digits after the decimal point in the answer. (5 pts) Answer: You want to accumulate 80902 for your daughter's college education. She would go to college in 15 years. You are considering investing in a mutual fund that averages 8% return per year. How much money do you need to invest every year to achieve your goal? (5 pts) Answer: The most recent past dividend per share of XYZ common stock is $1.80. As a mature company, dividend has been growing at a constant rate of 5.16% per year and is expected to do so in the foreseeable future. The required rate of return on the company's common stock is 9%. Compute the value of XYZ common stock. (5 pts) Answer: If the current share price Bluebonnet Electric's preferred stock is $33.7, what will be its required rate of return if the stock pays dividend of $9.5 per share? Report the return in percentage and keep two digits after the decimal point. (4 pts) Answer: Assume that the risk-free rate of return (Rt) is 4% and return on the market portfolio is 7.7 percent. Compute the required rate of return on a security that has a beta of 1.5. Keep two digits after the decimal point and express in percentage. (4 pts)