Assuming a par value of 1000 what is the price paid to the


1. A 4.0 percent corporate coupon bond is callable in ten years for a call premium of one year of coupon payments. Assuming a par value of $1,000, what is the price paid to the bondholder if the issuer calls the bond?

2. A firm pays a $11.80 dividend at the end of year one (D1), has a stock price of $68, and a constant growth rate (g) of 4 percent.

What is the Rate of Return

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Financial Management: Assuming a par value of 1000 what is the price paid to the
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