Staind inc has 11 percent coupon bonds on the market that


1. Staind, Inc., has 11 percent coupon bonds on the market that have 9 years left to maturity. The bonds make semiannual payments. If the YTM on these bonds is 5 percent, what is the current bond price? Answer the question with 2 decimals (e.g. 1030.12)

2. A company paid a dividend last year of $2, which is expected to grow at a constant rate of 5%. Company has a beta of 1.3. If the market is returning 11% and risk-free rate is 4%, calculate value of Company's stock?

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Financial Management: Staind inc has 11 percent coupon bonds on the market that
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