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Q4 Q5 Q3 A bond that has a par value of $1,000. The bond pays $40 in interest every six months and will mature in ten years. What is the price of the bond if the yield to maturity is 7%? Seven years ago, a company issued 20-year bonds with an 11% annual coupon rate at their $1,000 par value. The bonds had a 7.5% call premium, with 5 years of call protection. The company called the bonds today. Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called. A company has bonds outstanding with 9 years left to maturity. The bonds have a 9% annual 1 coupon rate and were issued 1 year ago at their par value of $1,000. However, due to changes in interest rates, the bonds' market price has fallen to $910.30. The capital gains yield las year was -8.97%. What is the yield to maturity? Q6 What is the value of a preferred stock that pays $5.55 dividend to an investor with a required rate of return of 10% Q7 A company is expected to pay a $1.80 per share dividend at the end of the year (D. =$1.80). The dividend is expected to grow at a constant rate of 4% per year. The required rate of return on the stock is 10%. What is the stocks' current value per share? Q8 A company expects its current annual $2.50 per share common stock dividend to remain the same for the foreseeable future. Therefore, the value of the stock to an investor with a required return of 12% is?