Question: 1) a treasury note with 5 years to maturity yield 3%. the average expected inflation rate is over the next 5'years is 0.4%, and the

1) a treasury note with 5 years to maturity yield 3%. the average expected inflation rate is over the next 5'years is 0.4%, and the real short term risk free rate is 1%. what is the maturity risk premium?

2) a corporate bond has 23 years to maturity a face value of $1,000, a coupon rate of 5% and pays interest semiannually. the annual market interest rate for similar bonds is 3.2%. what is the proce of the bond?

3) a bo d has anual coupon rate of 3.5% , a face value of $1,000, a price of $1,087.52, and matures in 10 years. what is the bonds YTM?

4) a corporate bond pays interest annually and has 4 years to maturity, a face value pf $1,000 and coupon rate pf 3.7%. the bonds current price is $992.72. It is callable at a call price of $1,050 in the year. what is the bonds yield to maturity? what is the bonds yield to call?

5) samsung has preferred stock outstanding with constant annual dividend of $2.9 that is promised forever. samaung has required return of 10%. what is the intrinsic value(fair price) of samsung preferred stock?

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