ESTION 1

What is the price of a 4-year coupon bond with a face value of $2000 and an 8% annual coupon

rate when the interest rate is 3%?

QUESTION 2

What is the price of a 3-year coupon bond with a face value of $4000 and a 5% annual coupon

rate when the interest rate is 4%?

QUESTION 3

What is the price of a three-year zero-coupon bond with a face value of $2000 when the interest

rate is 6%?

QUESTION 4

Assume the current dividends on a stock are $9 per share, growing at the rate of 5% annually. If

the interest rate is 8%, what is the value of this stock?

QUESTION 5

Assume the current dividends on a stock are $6 per share, decreasing at the rate of 3% annually.

If the interest rate is 7%, what is the value of this stock?