Question 1 Microhard has issued a bond with the following characteristics: Par: $1,000 Time to maturity: 17 years Coupon rate: 8 percent Semiannual payments Calculate the price of this bond if the YTM is 11%. Question 2 Watters Umbrella Corp. issued 15-year bonds 2 years ago at a coupon rate of 8.2 percent. The bonds make semiannual payments. If these bonds currently sell for 85 percent of par value, what is the YTM? Question 3 You purchase a bond with a par value of $1,000, a coupon rate of 6.9 percent, and a clean price of $905. If the next semiannual coupon payment is due in two months, what is the invoice price Question 4 The Coco Co. just paid a dividend of $1.40 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year, indefinitely. Investors require a return of 12 percent on the stock. a. What is the current price? b. What will the price be in 3 years? c. What will the price be in 9 years? Question 5 Newkirk, Inc., is expected to pay equal dividends at the end of each of the next two years. Thereafter, the dividend will grow at a constant annual rate of 5 percent, forever. The current stock price is $55. What is next year's dividend payment if the required rate of return is 14 percent? Question 6 Jupiter Satellite Corporation earned $20.3 million for the fiscal year ending yesterday. The firm also paid out 30 percent of its earnings as dividends yesterday. The firm will continue to pay out 30 percent of its earnings as annual, end-of-year dividends. The remaining 70 percent of earnings is retained by the company for use in projects. The company has 2.1 million shares of common stock outstanding. The current stock price is $82. The historical return on equity (ROE) of 10 percent is expected to continue in the future. What is the required rate of return on the stock? Question 7 Storico Co. just paid a dividend of $1.50 per share. The company will increase its dividend by 20 percent next year and will then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent dividend growth, after which the company will keep a constant growth rate forever. If the stock price is $34.10, what required return must investors be demanding on the company's stock