In this assignment you will need to provide answers to 10 questions relating to the values of bonds and stocks. See the
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In this assignment you will need to provide answers to 10 questions relating to the values of bonds and stocks. See the
In this assignment you will need to provide answers to 10 questionsrelating to the values of bonds and stocks. See the "Required"Section below for the details for each. Required: A. What is the value of a 5%, $1,000 face valuebond that matures is 11 years if investors require a 5% return ontheir investment?B. What will be the price of a 4.6%, $1,000 facevalue bond seven years from today if the bond matures in 21 yearsand the going rate of interest for such bonds is 7%?C. What is the value of a $1,000 zero-couponbond that matures in 26 years when the required rate of return is11%?D. What is the yield-to-maturity of a $1,000bond with a coupon rate of 4%, a 20 year maturity, and a currentprice of $1,240?E. What is the price of one share of 6%preferred stock that has a par value of $50 while investors have arequired rate of return of 9%?F. What is the required rate of return on a$7 preferred stock with a market price of $67 and a par value of$50?G. Using the dividend growth model, what isthe value of one share of a common stock that paid a dividend of$3.10 yesterday when investors require a 9% return on theirinvestment and who perceive that dividends will grow at 5% per yearfor the foreseeable future? H. What is a stock's total rate of return ifit sells for $60 in the market, paid a dividend of $3.21 yesterday,and investors anticipate the company's dividend will grow at 4% forthe foreseeable future?I. Assuming a stock sells for $71 and paid a$2 dividend yesterday, what is the stock's capital gains yield ifit's dividends are expected to grow at 5.5% each year for theforeseeable future? J. What is a stock's total rate of return ifit paid a dividend of $4 yesterday, sells for $39, and investersfeel that dividends will grow at 6% per year for the foreseeablefuture?