please answer all questions

Question 1_

A 5-year bond pays interest annually. Its par value is $1,000 and its coupon rate equals 9%. If the markets required return on the bond is 8 per cent, what is the bonds market price?

Question 2

SydMel Ltd has issued 6-year bonds that pay $35 in interest twice each year. The face value of these bonds is $1,000 and they offer a yield to maturityof 5.5 %. How much are the bonds worth?

Question 3

Investors face a tax rate of 30% on interest paid by corporate bonds. If tax-free bonds currently offer yields of 6 %, what yield would equally risky corporate bonds need to offer to be competitive?

Question 4

S Ltd has outstanding an issue of preferred equity with a par value of $100. It pays an annual dividend equal to 9% of par value. If the required return on S Ltds preferred equity is 7 %, and if S Ltd pays its next dividend in one year, what is the market price of the preferred equity today?

Question 5

AMCs preferred equity pays a dividend of $10 each year. If the shares sell for $60 each and the next dividend will be paid in one year, what return do investors require on AMC preferred equity?

Question 6

SydMel Ltd has issued preferred equity that offers investors a 10 % annual return. A share currently sells for $80, and the next dividend will be paid in one year. How much is the dividend?

Question 7

Gail Dribble is analysing the shares of Petscan Radiology. Petscans equity pays a dividend once each year, and it just distributed this years $0.85 dividend. The market price of the share is $12.14. Gail estimates that Petscan will increase its dividends by 7 % per year forever. After contemplating the risk of Petscan equity, Gail is willing to hold the shares only if they provide an annual expected return of at least 13 %. Should she buy Petscan shares or not?

Question 8

Sydney-Melbourne (SydMel) operates a chain of weight-loss centres for carb lovers. Its services have been in great demand in recent years and its profits have soared. Sydmel recently paid an annual dividend of $2.70 per share. Investors expect that the company will increase the dividend by 25% in each of the next three years, and after that they anticipate that dividends will grow by about 6% per year. If the market requires an 11% return on SydMel equity, what should the share sell for today?