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Q1 Compute the bond price. Maturity: 20 years Annual coupon rate: APR 7.20% Yield to Maturity (i.e. discount rate): APR 8.70% Par: 1,000.00 Q2/ Compute

Q1

Compute the bond price.

Maturity:

20 years

Annual coupon rate:

APR 7.20%

Yield to Maturity (i.e. discount rate):

APR 8.70%

Par:

1,000.00

Q2/

Compute the bond price for the bond in the previous problem assuming the coupons are semi-annual (note: this will change the bond price).

Q3/

Compute the bond price.

Maturity:

15 years

Annual coupon rate:

9.60% APR

Yield to Maturity (i.e. discount rate):

8.40% APR

Par:

1,000.00

Q4/

Compute the bond price.

Maturity:

30 years

Annual coupon rate:

5.60% APR

Yield to Maturity (i.e. discount rate):

5.60% APR

Par

1,000.00

Q5

Compute the stock price.

Assume the annual dividend is constant and the next dividend arrives next period.

Dividend:

3.15

Discount rate:

15.60% APR

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