Bond Yields Taylor Company has 6.9 percent coupon bonds on the market with 15 years to maturity. The bonds make semiannual payments and currently sell for 103 percent of par. What is the current yield on the bonds, the yield to maturity, and the effective annual yield? 

Bond Yields Pelican Company wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 6.7 percent coupon bonds on the market that sell for $1,068, have a par value of $1,000, make semiannual payments, and mature in 20 years. What coupon rate should the company set on its new bonds if it wants them to sell at par?

Stock Valuation Finch Inc. just paid a dividend of $4.15 per share of its stock. The dividends are expected to grow at a constant rate of 5.5 percent per year, indefinitely. Investors require a 15 percent return on the stock for the first three years, a 13 percent return for the next three years, and then an 11 percent return thereafter. What is the current share price for the stock?

Non constant Growth Pelican Inc. is a young start-up company. No dividends will be paid on the stock over the next 9 years because the firm needs to plow back its earnings to fuel their growth. The company will pay a dividend of $16.75 per share in 10 years and will increase the dividend by 3.8 percent per year thereafter. If the required return on this stock is 12 percent, what is the current share price?

Answer rating: 100% (QA)

Bond Yields Taylor Company To calculate the current yield yield to maturity and effective annual yield for the Taylor Companys 69 percent coupon bonds we need the following information Coupon rate 69 ... View the full answer