Question: 1. Consider a $1000 face value bond with a coupon rate of 6 percent. If the current yield to maturity is 6 percent, how much

1. Consider a $1000 face value bond with a coupon rate of 6 percent. If the current yield to maturity is 6 percent, how much will the bond sell for?

Macroflex Corporation issued bonds 14 years ago with a face value of $1,000 and a coupon rate of 10 percent (semi-annual). The bond matures in six years. If the yield to maturity on similar risk investments is 14 percent, what is the current market price of the bond?

Tapley Co. just issued preferred stock with a face value equal to $80 that pays a 10 percent annual dividend. If the stock currently yields 8 percent, what is its market value?

Jones Brothers Clothing expects its common stock dividend to grow at a constant 4 percent for the remainder of the companys life. A few days ago, Jones paid a $5 dividend. If the required return on the companys stock is 12 percent, what is the value of the stock today?

Reco Corp. is expected to pay a dividend of $0.90 next year. The forecast for the stock price a year from now is $21.00. If the required rate of return is 13 percent, what is the current stock price?

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