typically have an interest rate of between 3 and 5 percent more than AAArated long-term debt. (1 point) 2. Hinojosa Company's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65. The market requires an interest rate of 6.1% on these bonds. What is the bond's price? ( 2 points) A. $1,024.74 B. $1,147.71 C. $1,116.97 D. $1,096.47 E. None of the above 3. Liscano, Inc. bonds have a 4% coupon rate with semiannual coupon payments and a $1,000 par value. The bonds have 11 years until maturity, and sell for $925. What is the current yield for Liscano's bonds? (2 points) A. 2.16% B. 3.45% C. 4.32% D. 5.52% E. None of the above 4. You are considering an investment in Wilburn Oil's preferred stock. The preferred stock pays a dividend of $3.37. Your required return is 14 percent. Value the stock. ( 2 points) 5. If the current market price of preferred stock is $77, and the stock pays a $2 dividend, what is the expected rate of return? (2 points) 6. B. Speer Corporation's common stock paid $1.10 in dividends last year and is expected to grow indefinitely at an annual 8 percent rate. What is the value of the stock if you require a 12 percent return? (2 points) 7. T. Brisendine Inc. just paid a dividend of $6 per share. Future dividends are expected to grow at a constant rate of 7% per year. What is the value of the stock if the required return is 18% ? ( 2 points) 8. Pedneault Corp's common stock is currently selling for $73.00. It is expected to pay a dividend of $3.00 at the end of the year. Dividends are expected to grow at a constant rate of 4% indefinitely. Compute the expected rate of return on Pedneault Corp stock. (Hint: Review slides example) (2 points)