Things Get Messi Enterprises is issuing new bonds for a capital budgeting project. The bonds will have 30.00 year maturities with a coupon rate of 7.25% APR with semi-annual coupon payments (assume a face value of $1,000 on the bond).

The current market rate for similar bonds is 5.70% APR. The company hopes to raise $32.00 million with the new issue.

Based on the current market rate, what will a new bond sell for?

A couple purchased a bond for $950.00 three years ago. The bond pays 6.25% APR with semi-annual coupons with a face value of $1,000. Currently, the bond has exactly 10 years until maturity, and investors seek a return of 12.00% APR on bonds of similar risk.

What is the current price of the bond?

A stock just paid a dividend this morning of $1.38. Dividends are expected to grow at 14.00% for the next two years. After year 2, dividends are expected to grow at 7.81% for the following three years. At that point, dividends are expected to grow at a rate of 4.00% forever. If investors require a return of 14.00% to own the stock, what is its intrinsic value?