1. A bond has a face value of 10,000. The bond matures in 12 years and pays its coupon interest semi-annually. The coupon rate is 9%. Assuming a yield of 8%, what is the price of the bond?
2. Zap Power Company pays an annual dividend on its preferred stock of $4.54 per share. The investors have an 8% required rate of return. What is the price of the stock?
3. What is the price of the following common stock? Dividend $2.42, growth rate is 4%, and required rate of return is 11%.
4. No Crash Airlines has an annual dividend of 1.17 per share. The company expects 5% annual growth. Investors require a 12% return from this stock. What is its current price?
5. A bond has a par value of 1,000. The bond matures in 17 years. Assume semi-annual payments. For a coupon rate of 9% and a yield of 11%, what is the current price?
6. A semi-annual bond has a maturity date of 20 years from now. Assuming a face value of 1,000, a coupon rate of 7%, and a yield of 9%, what is the bond's price?