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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

Posted: Wed Jul 06, 2022 6:44 pm
by answerhappygod
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?