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Solve the following problems regarding bank loans, bonds, and stocks. Assume an interest rate of 1 1 percent a . How much would you poy

Solve the following problems regarding bank loans, bonds, and stocks. Assume an interest rate of 11 percent
a. How much would you poy for a 10-year bond with o par value of $1,000 and a 102 percent coupon rate? Assume interest is paid
annually.
b. How much would you pay for a share of preferred stock paying a $6.0-per-share annual dividend forever?
c. A company is plonning to set aside money to repay $166 million in bonds that will be coming due in ten years. How much money
would the company need to set aside at the end of each year for the next ten years to repoy the bonds when they come due? How
would your answer change if the money were deposited ot the beginning of each year?
Note: Round your answers to 2 decimal places.
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