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urpe Corporation bearing a coupon rate 12%, pay coupons semiannually; have 3 years rsining to maturity, ansemiannuallytly priced at $940 per bond. What is the

urpe Corporation bearing a coupon rate 12%, pay coupons semiannually; have 3 years rsining to maturity, ansemiannuallytly priced at $940 per bond. What is the yield to maturity?

2. George, Inc. bonds have a face value of $1,000 and a 9% coupon paid semiannually; the bonds mature in 8 days. What current yield would be reported in The Wall Street Journal if the yield to maturity is 7%.

3.Assume there is a 12- year, 9.5% semiannual coupon bond, with a par value of $1000. The bond sellsy for $1,152. A. What is the bond's yield to maturity. B. What is the bond's current yield?

4. A zero-coupon bond with a par value of $1000 has 15 years to maturity. If the YTM is 6.2%. What is the current price this bonds?

5. The company has a required rate of return 7%. The company has completed a new project that is expected to grow dividends at a rate of 50% the first year and 25% the following year,after which growth should be at a constant rate of 6%. The last dividend paid was $1.00. What is the value Per share of your firm's stock?

6. Boomer products, Inc. Manufactures "no- inhale cigarettes. As their target customers age and pass on, sales of the product are expected to decline. Thus, demographics suggest that earnings and dividends will decline at a rate of 5% annually forever. The firm just paid a dividend of $4; given required return is 10%, what is the current price of the stock.

7. The Doggy Wash pays a constant annual dividend of $1.30 per share (growth rate(g)=0). How much are you willing to pay for one share if you require a 12 percent rate of return?

Bug Buster just paid its annual dividend of $1.25 a share. The firm recently announced that all future dividends will be increased by 3% annually. What is one share of this stock worth to you if you require an 11% rate return?

9.Jackson Street Repair's stock currently sells for $55 per share. The market requires a 12% return on the firm's stock. If the company maintains a constant 5% growth rate in dividends. What was the most recent dividends per share paid on the stock(hint: you are looking for DO)?

10.Booda Company's stock sells for $22 per share, its last dividend was $1.00. and its growth rate is a constant 8%. What is its required rate of return (hint: use the constant dividend growth model to solve for r).?

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