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Verizon LTE * 17%; 11:23 AM lander blackboard.com Fin 301 Test #2 #1 (25 points) A firm issues a bond with face value S1000, a

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Verizon LTE * 17%; 11:23 AM lander blackboard.com Fin 301 Test #2 #1 (25 points) A firm issues a bond with face value S1000, a coupon rate of 5% (paid semi-annually) and with 20 years to maturity Find the price of the bond if the market rate of interest is 6% (8 points) Find the price of the bond if the market rate of interest is 4%. (8 points What market rate of interest would make the bond's value equal to $1000? (5 points) 4 Is there a negative relationship between interest rates and market values? (4 points) #2 (25 points) Stock XYZ has a beta ofs and just paid a dividend of D-10. The growth rate of dividends is assumed to be constant at indefinitely. Also, the risk-free rate is ',-3% and the expected retum

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