Question
Could you please show me how to answer these questions step by step? 27.Venus Inc. has a 10% coupon rate bond that matures in 10
Could you please show me how to answer these questions step by step?
27.Venus Inc. has a 10% coupon rate bond that matures in 10 years. The bond pays coupon payments semiannually. What is the market price of a $1,000 face value bond if the yield to maturity is 13%?
a.$834.72
b.$849.04
c.$867.80
d.$783.52
e.$815.82
28.Apple's bonds currently sell for $1,150 and have a par value of $1,000. They pay an 8% annual coupon rate and have a 15-year maturity. What is their yield to maturity (YTM) of the bond?
a.6.41%
b.3.96%
c.5.60%
d.4.52%
e.5.30%
29.Neptune Inc.'s bonds currently sell for $1,200 and have a par value of $1,000. They pay a $110 annual coupon and have a 10 years to maturity, but they can be called in 3 years at $1,120. What is their yield to call (YTC)?
a.7.09%
b.7.54%
c.8.28%
d.6.20
e.7.98%
33.Shares of common stock of the Samson Co. offer an expected total return of 10%. The dividend is expected to grow at a constant 4% per year. The dividend yield must be:
a.6.00%
b.10.00%
c.4.00%
d.-4.00%
e.14.00%
34.Mac Inc.'s most recent dividend was $2 per share (D0). The dividend is expected to grow at a rate of 5% per year.The risk-free rate is 2% and the return on the market is 10%.If the company's beta is 0.9, what is the price of the stock today?
a.$50.00
b.$48.55
c.$47.70
d.$51.67
e.$52.56
36.Jack's Pet Shop has a cost of debt of 5%, a cost of equity of 10%, and a cost of preferred stock of 7%. The market capitalization of the common stock is $2,000,000. Preferred stock has a total market value of $1,000,000. The bond issue has a market value of $500,000.The tax rate is 35%. What is the weighted average cost of capital for Jack's Pet Shop?
a.8.18%
b.9.39%
c.6.66%
d.10.16%
e.8.85%
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