1.

The $1,000 face value ABC bond has a coupon rate of 6%, with interest paid semi-

annually, and matures in 5 years. If the bond is priced to yield 8%, what is the bond's

value today?

2. The $1,000 face value EFG bond has a coupon of 10% (paid semi-annually), matures in 4

years, and has current price of $1,140. What is the EFG bond's yield to maturity?

3. The HIJ bond has a current price of $800, a maturity value of $1,000, and matures in 5

years. If interest is paid semi-annually and the bond is priced to yield 8%, what is the

bond's annual coupon rate?

4. The Bulldog Company paid $1.5 of dividends this year. If its dividends are expected to

grow at a rate of 3 percent per year, what is the expected dividend per share for Bulldog

five years from today?

5. The current price of XYZ stock is $25 per share. If XYZ’s current dividend is $1 per

share and investors’ required rate of return is 10 percent, what is the expected growth rate

of dividends for XYZ, based on the constant growth dividend valuation model?

6.