Financial Market and Institutions (Financial Markets and Institutions Exam) 11974.72 23. Navy company have a $1000 face value of a bond, and its mature in 33 years, the appropriate discount rate is 8.47%. they pay the interest annually. the bond sold at a price of $750. what is the bond annual coupon rate? (2 Points) 12.40% 6.20% 3.109 9,20% 24. what is the current price of Naser company if it has paid an annual dividends of $1.5, $2.3 50 and $2.7 for each stock over the last five years since there is no any information about the growth the firm expect to earn 17% rate of return General Financial al Financial Market and Institutions (Financial Markets and Institutions Exam) 24. what is the current price of Naser company if it has paid an annual dividends of $1.5, $2.3, 50 and $2.7 for each stock over the last five years since there is no any information about the growth the firm expect to earn 17% rate of return. (2 Points) 5.75 4.40 3.38 2.62 25 with respect to interest rate risk, which of the following statement is/are correct? (2 Points) if short-term interest rates increase the required rate of return on money market securities will increase and the oldes of money market securities will Geral Financial Final Financial Market and Institutions (Financial Markets and Institutions Exam) 25. with respect to interest rate risk, which of the following statement is/are correct? (2 Points) If short-term interest rates increase, the required rate of return on money market securities will increase and the prices of money market securities will increase. money market security values are sensitive to interest rate movements in the same direction money market securities are not as sensitive as bond values to interest rate movements. an increase in interest rate is not as harmful to a capital market security because it will mature soon anyway and the investor can reinvest the proceeds at the prevailing rate at that time comparing with money market securities 26. if you have the following information: the present value of a bond = 756.30, the discount rate 17 percent bond life = 7 years, the coupon rate = 15 percent the face value = 1000. what is the annual coupon payment of this bond? (2 points)