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quired: A. What is the value of a 17.6%,$1,000 face value bond that matures in 477 years if investors require a 17.6% return on their
quired: A. What is the value of a 17.6%,$1,000 face value bond that matures in 477 years if investors require a 17.6% return on their investment? B. What will be the price of a 3% coupon, $1,000 face value bond 15 years from today if the bond matures in 25 years and the going rate of interest for such bonds is 6% ? C. What is the value of a $1,000 zero-coupon bond that matures in 25 years when the required rate of return is 4.5% ? D. What is the yield-to-maturity of a $1,000 bond with a coupon rate of 7%, a 19 year maturity, and a current price of $1,260 ? E. What is the price of one share of 6% preferred stock that has a par value of $50 while investors have a required rate of return of 8% ? F. What is the required rate of return on a $5 preferred stock with a market price of $57 and a par value of $30 ? G. Using the dividend growth model, what is the value of one share of a common stock that paid a dividend of $2.40 yesterday when investors require a 10% return on their investment and who perceive that dividends will grow at 4% per year for the foreseeable future? H. What is a stock's total rate of return if it sells for $50 in the market, paid a dividend of $3.70 yesterday, and investors anticipate the company's dividend will grow at 5% for the foreseeable future? I. Assuming a stock sells for $70 and paid a $2.15 dividend yesterday, what is the stock's capital gains yield if it's dividends are expected to grow at 4% each year for the foreseeable future? J. What is a stock's total rate of return if it paid a dividend of $4.71 yesterday, sells for $62, and investers feel that dividends will grow at 5% per year for the foreseeable future
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