Compute the price of a 7.4 percent coupon bond with 15 years left to maturity and a market interest rate of 9.0 percent. (Assume interest payments are semiannual.)

Financial analysts forecast Limited Brands (LTD) growth rate for the future to be 9.5 percent. LTDs recent dividend was $0.40. What is the value of Limited Brands stock when the required return is 11.5 percent?

A Treasury bond that you own at the beginning of the year is worth $1,050. During the year, it pays $38 in interest payments and ends the year valued at $1,060.

What was your dollar return and percent return?