Problem # 15 Graham Bell has just retired after 30 years with the telephone company. His total pension funds have an accumulated value of $200,000 and his life expectancy is 16 more years. His pension fund manager assumes he can earn a 5% return on his assets, what will be his yearly annuity for the next 16 years? Problem # 16 Suppose Exxon sold an issue of bonds with a 10 year maturity at $1,000 par value and 12% coupon rate. Two years after the bonds were issued, the going rate of interest on bonds such as these fell to 8%. At what price would the bonds sell? What if after two years, the going rate of interest increased to 14%, what would the sell price be? Problem #17 The Brigapenske Co. has just paid a cash dividend of $2 per share. Investors require a 16% return from investments such as this. If the dividend is expected to grow at a steady rate of 8% per year, what is the current value of the stock? What will it be worth in 5 years? Problem #18 A Microgates Industries bond has a 10% coupon rate and a $1,000 face value. Interest is paid semi- annually and the bond has 20 years to maturity. If investors require a 12% yield, what is the bond's value? Problem #19 Miller Brothers Hardware paid an annual dividend of $1.15 per share last month. Today, the company announced that future dividends will be increasing by 2.6 percent annually. If you require a 12 percent rate of return, how much are you willing to pay to purchase one share of this stock today