Question: A 20-year bond pays 7% annually on a face value of $1,000. If similar bonds are currently yielding 4%, what is the market value of

  1. A 20-year bond pays 7% annually on a face value of $1,000. If similar bonds are currently yielding 4%, what is the market value of the bond?

  1. A 10-year bond, with a par value equaling $1,000, pays 8% annually. If similar bonds are currently yielding 7% annually, what is the market value of the bond? Use semi-annual analysis.

  1. A 10-year zero-coupon bond that yields 9% is issued with a $1,000 par value. What is the issuance price of the bond?

  1. An issue of preferred stock is paying an annual dividend of $1.60. The growth rate for the firm's common stock is 5%. What is the preferred stock price if the required rate of return is 7%?

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