ebdav/pid-223685 1-dt-content-rid-1 5630687-1/courses/20 19 101 1553/Assignment%20 %232pt 5. A $1,000 par value 12-year bond with a 14 percent coupon rate recently sold for $925. What is the yield to maturity? Assume semiannual payments and submit your answer as a percentage rounded to two decimal places. 6. Consider a 10 year bond with face value $1,000 that pays a 6.8% coupon semi-annually and has a yield-to-maturity of 8.4%. What is the approximate percentage change in the price of bond if interest rates in the economy are expected to decrease by 0 a percentage and round to two decimal places. (Hint: What is the expected price of the bond before and after the change in interest rates?) .60% o per year? Submi t your answer as ACME, Inc. expects its current annual S3.25 per share common stock dividend to remain the same for the foreseeable future. What is the intrinsic value of the stock to an investor with a required return of 65%? Round to two decimal places. 7. 8. ABC Company's common stock is expected to pay a $9.50 dividend in the coming year. If investors require a 1 7% return and the growth rate in dividends is expected to be 790, what should the market price of the stock be? Round to two decimal places