The All Burned Down Fire and Casualty Company owns $10,000 of par value bonds that mature in 20 years. These bonds pay 4% interest semi-annually on the face value of the bond. Compute the value of the bonds IF the owner's Required Rate of Return equals 6% in the current environment. $7,616 $7,689 $7,754 $7,782 Company X has an outstanding bond with a $1,000 face value and a 9% coupon rate of interest paid semiannually. The bond, which was issued 22 years ago, matures in eight years. If the current price of the bond is $1,339, then what is the Yield to Maturity? 21.58% 12% 15.74% 31.48% You have a chance to buy some preferred stock from Company X which has paid an annual, constant dividend of $20.00. Your Required Rate of return to entice you towards moving your money into investments is 11%. For what price should you be willing to pay for the preferred stock? $183.82 $180.82 $181.82 $184.28 You have a chance to buy some common stock that has paid the most recent dividend of $1.99 for a price of $70.00. You also know that the company has increased the growth rate of dividends by 8% each year for the pasts 17 years. If your required rate of return for you as a rational economic investor equals 11%, what rate of return will you realize if you buy the stock for a price of $70 per share? 11.07% 12.34% 22.07% 11.43% Company X issued bonds ten years ago at $1,000 per bond. The bonds had a 25 year life when issued and the annual coupon rate was 10%. This 10% coupon rate exactly matched the required return by bondholders at that time. Interest is paid semi-annually. After ten years, the environment changed such that 7.25% is now the investors' required rate of return. Compute the new valuation of the bond which you hold as an asset $1,246.72 $1,248.98 $1,348.98 $1,347.98