fianacial management 12-15

12. If a bond has a face value of Euro 10,000 and a coupon rate of 10% what would the coupon payment be on a semi-annual basis? A- 5,000 B-50 C-500 D- 1,000 13. All other things being equal, interest rate risk for bonds with shorter terms to maturity, compared to their longer term equivalents, will be.. A- Similar B- Lower C-Higher D- None 14. XYZ Ltd. has just paid a dividend of Euro 5.00 and expects to pay the same dividend for the foreseeable future. What is the current value of XYZ Ltd assuming a discount rate of 10% A- 50 B-32.45 C- 5.5 D-500 15. Use a dividend growth model to value a share with a next-period dividend of Euro 1.00 and expected dividend growth for the foreseeable future of 5 %. Assume a discount rate of 12%. A-14.29 B-10.45 C-12.45 D-1.05