need help to solve below problems:

1. Consider a bond with a coupon rate of 8 percent that pays semiannual interest and matures in eight years. The market rate of return on bonds of this risk is currently 11 percent. What is the current value of a $1,000 face value bond?

1. A.$929.17
2. B.$893.30
3. C.$843.07
4. D.$830.58
5. E.$854.08

2. A 12-year, 5 percent coupon bond pays interest annually. The bond has a face value of $1,000. What is the percentage change in the price of this bond if the market yield rises to 6 percent from the current level of 5.5 percent?

A.4.45%

B.-5.28%

C.-2.38%

D.-4.26%

E.1.13%

3. ABC owns 15 percent of XYZ Corporation. What tax benefit does ABC derive from this situation?

A.ABC benefits because it is able to treat any XYZ dividends it receives as interest income.

B.ABC receives no tax benefit but XYZ is only taxed on 30 percent of its net income.

C.All dividend income ABC receives from XYZ is tax-exempt.

D.ABC can exclude 30 percent of any XYZ dividends received from its taxable income.

E.Seventy percent of the dividends paid by XYZ to ABC is exempt from income taxes.

4. Mason's has a 5-year, 8 percent annual coupon bond with a $1,000 par value. Dixon's has a 10-year, 8 percent annual coupon bond with a $1,000 par value. Both bonds currently have a yield to maturity of 8 percent. Which one of the following statements is correct if the market rate decreases to 7 percent?

1. A.Mason's bond will decrease in value by4.10percent and Dixon's bond will decrease in value by7.02percent.
2. B.Mason's bond will increase in value by 4.10percent and Dixon's bond will increase in value by 7.02percent.
3. C.Dixon's bond will increase in value by 6.87 percent.
4. D.Both bonds will increase in value by 4.10 percent.
5. E.Mason's bond will increase in value by7.02percent and Dixon's bond will increase in value by4.10percent.

5. New Corp. last paid a $1.50 per share annual dividend. The company is planning on paying $1.62, $1.68, $1.75, and $1.80 a share over the next four years, respectively. After that the dividend will be a constant $2.25 per share per year. What is the market price of this stock if the market rate of return is 15 percent?

1. A.$13.33
2. B.$13.44
3. C.$15.00
4. D.$12.48
5. E.$9.09

6. When shareholders are granted preemptive rights, they obtain the right:

A.to resell their shares to the issuer at any time at a predetermined price.

B.of first refusal for their proportionate percentage of new shares offered.

C.to share proportionally in regular and liquidating dividends.

D.to elect members to the board of directors.

E.to receive dividends prior to any preferred shareholders.

7.The market price of a bond increases when the:

A.face value decreases.

B.coupon rate decreases.

C.coupon is paid annually rather than semiannually.

D.discount rate decreases.

E.par value decreases.