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Cullumber Company is issuing eight-year bonds with a coupon rate of 6.0 percent and semiannual coupon payments. If the current market rate for similar bonds

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed Cullumber Company is issuing eight-year bonds with a coupon rate of 6.0 percent and semiannual coupon payments. If the current market rate for similar bonds is 8 percent. Assume face value is $1,000. What will the bond price be? (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and bond price to 2 decimal places, e.g. 15.25.) Bond price $ If company management wants to raise $1.25 million, how many bonds does the firm have to sell? (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and number of bonds to 0 decimal places, e.g. 5,275.) Number of bonds Sandhill Corp. management plans to issue seven-year zero coupon bonds. It has learned that these bonds will sell today at a price of $442.26. Assuming annual coupon payments, what is the yield to maturity on these bonds? Assume face value is $1,000. (Round answer to 3 decimal places, e.g. 15.251\%.) Yield to maturity % Sunland, Inc., has outstanding bonds that will mature in six years and pay an 8 percent coupon semiannually. If you paid \$1,053.26 today and your required rate of return was 6.3 percent. (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final answer to 2 decimal places, e.g. 15.25.) Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) How much should you have paid for the bond? Worth of the bond $ Did you pay the right price for the bond? In December 2020 , the risk-free rate was 4.29 percent, the market risk premium was 8 percent, and the beta for Twitter stock was 1.71. What is the expected return that was consistent with the systematic risk associated with the returns on Twitter stock? (Round answer to 2 decimal places, e.g. 17.54\%.) Expected return % You have just invested in a portfolio of three stocks. The amount of money that you invested in each stock and its beta are summarized below. Calculate the beta of the portfolio and use the Capital Asset Pricing Model (CAPM) to compute the expected rate of return for the portfolio. Assume that the expected rate of return on the market is 16 percent and that the risk-free rate is 6 percent. (Round beta answer to 3 decimal places, e.g. 52.750 and expected rate of return answer to 2 decimal places, e.g. 52.75\%.) Beta of the portfolio Expected rate of return % The International Publishing Group is raising $10 million by issuing 15 -year bonds with a coupon rate of 7.00 percent. Coupon payments will be made annually. Investors buying the bonds today will earn a yield to maturity of 7.00 percent. The Face Value of each bond is $1,000. At what price will the bonds sell in the marketplace? Sale value

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