1. New Company’s outstanding bonds have a $2000 par value a 10% semiannual coupon 10 years to maturity and a 5.5% YTM. What is the bonds price?
2. New company is expected to pay $ 0.75 per shar dividend at the end of the year. The dividend is expected to grow at a constant rate of 6% a year. The required rate of return on stock is 13% what is the stocks current value per share?
3. New company’s stock currently sells for $15 a share it just paid a dividend of $.75 a share. The dividend is expected to grow at a constant rate of 7% a year. What is the required rate of return?