What is the valueof a18-year, bond with an annual coupon rate of 9.8%,butmaking semiannual interest payments? The bond has a face value of$1,000, and you require an annual 8.8% discountrate forthis investment.

$1,105.69

$1,089.52

$1,092.80

$1,097.90

$1,101.14

What is the price of a zero coupon (1,000 face value) bond with four years to maturity when the required rate of return is 5%?

$837.48

$747.26

$821.93

$822.70

$839.62

Acme Inc.'s stock has a 25% chance of producing a 25% return, a 50% chance of producing a 15% return, and a 25% chance of producing a 5% return.What is the firm's expected rate of return?

10.25%

12.50%

10.80%

11.20%

11.00%

Suppose a firm has a preferred stock that pays a $11 annual dividend (no growth expected in this payment) and currently sells for $95.00 per share.If it plans to issue more preferred shares paying the same dividend but also needs to incur a floatation cost of five percent, the firm's cost of preferred stock would be:

11.70%

12.19%

12.63%

13.03%

13.40