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A bond has coupon rate=5%, YTM=8%, and maturity=5 years. If the price of the bond is $10,000, what must be the face value? A stock pays a quarterly dividend of $5. The first dividend will be received

A bond has coupon rate=5%, YTM=8%, and maturity=5 years. If the price of the bond is $10,000, what must be the face value?

A stock pays a quarterly dividend of $5. The first dividend will be received in exactly one quarter. This dividend payment is expected to continue forever. If the annual interest rate is 10%, what is the stock price per share today?

A stock will not pay any dividends for 5 years. Then the company will begin paying annual dividends, the first to be received exactly 6 years from today in the amount of $5 per share. This annual dividend is expected to grow by 4% each subsequent year and continue to be paid forever. If the annual interest rate is 14%, what is the stock price per share today?

A stock pays an annual dividend of $5 per share (first dividend to be received in one year) and this dividend is expected to grow by 4% per year, forever. If the annual interest rate is 10%, what do you expect the dividend yield and capital gains rate to be?

A bond has 15 years left to maturity. The annual coupon rate is 9%, and face value is $10,000. If the YTM=12%, what is the bond price?

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* **** ***** * ** of ****** and ********* discounted at ***** ***** * ************ *** ***** FV ** PVIF *** *** )10000= 05×39927×fv+ 6806×fvTherefore **** ***** = 10000÷8802=113612 ***** ***** * div÷ ***** 5÷025*=200* ********* ******** quarterly ************************ if ****** *********** *** ***** ************** Share ***** ** ** div÷ ****** ******************** ** **** **** share ***** ** y0= ***************** ***** price * *** ******* 8333So div ***** * **** sh ***** ********************** **** PRICE= ********** **** ****** ********* ****** (12% *********************** *****************

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