1. Bonds issued by VIX Industries have a par value of $1,000.

The bonds a
The coupon rate is 8% and the coupon payment is paid semiannually. Wha

2. WMT Enterprise has bonds with face value of $1,000 on the market mak
At this price, the bonds yield 6%. What must the coupon rate be on WMT

3. A MU Industries bond has a 10% coupon rate and a $1,000 face value. I
If investors require a 8% yield, what is the bonds value?

4. ABC Co. has just paid a cash dividend of $2.1 per share. Investors requ
If the dividend is expected to grow at a steady 9% per year, what is the cu

5. XYZ Corporation will pay a $4.5 per share dividend next year. The comp
If you require a 10% return on your investment, how much will you pay for

6. Suppose we observe a stock selling for $40 per share. The next dividen
What is the dividend yield in this case? The capital gains yield? The total

7. TXN, Inc., has an issue of preferred stock outstanding that pays a $6.3 d
If this issue currently sells for $78.86 per share, what is the required retur

8. BGN, Inc. just paid a dividend of $4. The dividend is expected to grow a
What is the value of the stock if the required rate of return is 20%?

$1,000. The bonds are currently selling for $885.50. They have 10 years remaining to matu
semiannually. What is the bonds yield to maturity?

0 on the market making annual payments, with 10 years to maturity, and selling for $1,146.
on rate be on WMTs bonds?

$1,000 face value. Interest is paid semiannually, and the bond has 15 years to maturity.

are. Investors require a 16% return from investments such as this.

year, what is the current value of the stock? What will the stock be worth in five years?

next year. The company pledges to increase its dividend by 4% per year, indefinitely.
much will you pay for the company stock today?

e. The next dividend will be $1 per share, and you think the dividend will grow at 12% per
ins yield? The total required return?

ng that pays a $6.3 dividend every year, in perpetuity.

s the required return?

expected to grow at a 30% rate for the next 3 years and at a 10% rate thereafter.
turn is 20%?

0 years remaining to maturity.

y, and selling for $1,146.80.

s 15 years to maturity.

be worth in five years?

r year, indefinitely.

end will grow at 12% per year forever.

rate thereafter.