Part II. (40 points; 2 points each) Make sure you write BOTH the formulas/calculator function keys AND answer for each question. Formulas/function keys are worth 1 point, and answers are worth 1 point each.

21) October Enterprise has a 13-year bond issue outstanding that pays a 9.5% coupon. The bond is currently quoted at 93.8 and has a par value of $1,000. Interest is paid semiannually. What is the yield to maturity?

22) Genesis, Inc. has $1,000 face value bonds outstanding with a market price of $1001. The bonds pay interest semiannually, mature in 15 years, and have a yield to maturity of 5.87 percent. What is the current yield?

23) A 8-year, semiannual coupon bond is priced at $927. The bond has a $1,000 face value and a yield to maturity of 4.6 percent. What is the coupon rate?

24) Oceanview, Inc. bonds have a face value of $1,000. The bonds carry a 9 percent coupon, pay interest semiannually, and mature in 15 years. What is the current price of these bonds if the yield to maturity is 7.7 percent?

25) The nominal rate of return on the bonds of Springs Co. is 7.82%. The real rate of return is 2.94%. What is the rate of inflation?

26) Ginger Foods just paid its annual dividend of $2.4 a share. The firm recently announced that all future dividends will be increased by 3 percent annually. What is one share of this stock worth to you if you require a 10 percent rate of return?

27) Stock A just paid a $3.8 a year dividend which is expected to increase by 4.5% per year. If you are planning on buying this stock three years from today, how much should you expect to pay per share if the market rate of return for this type of security is 7.7% at the time of your purchase?

28) Salad Bowl, Inc. recently paid a $6.6 annual dividend on its common stock. This dividend increases at an average rate of 3% per year. The stock is currently selling for $80 a share. What is the market rate of return?