Need help with question #10

A) $7440.69 B) $13,021.21 7) 7) A S1000 bond with a coupon rate of 6.6% paid semiannually has ten years to maturity and a yield to maturity of 6.0%. If interest rates fall and the yield to maturity decreases by 0.8%, what will happen to the price of the bond? A) The price of the bond will fall by S76.16. B) The price of the bond will rise by $88.86. C) The price of the bond will fall by $63.47. D) The price of the bond will rise by $63.47. 8) 8) A company issues a ten-year $1,000 face value bond at par with a coupon rate of 7.0% paid semiannually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 9.2% What was the percentage change in the price of the bond over the past two years? A) -14.72% B) -9.81% C) -12.27% D) - 17.18% 9 9) A firm issues two-year bonds with a coupon rate of 6.3%, paid semiannually. The credit spread for this firm's two-year debt is 0.8%. New two-year Treasury notes are being issued at par with a coupon rate of 4.0%. What should the price of the firm's outstanding two-year bonds be per $100 of face value? A) $102.83 B) $143.96 C) $123.39 D) 582.26 10) D) $31.57 10) Coolibah Holdings is expected to pay dividends of $1.00 every six months for the next three years. If the current price of Coolibah stock is $22.30, and Coolibah's equity cost of capital is 14% (APR), what! price would you expect Coolibah's stock to sell for at the end of three years? A) $26.31 B) $28.94 C) $30.26