Question: Don't need problem 33 semiannually) i 32) What is the price of a $1,000 par value zero coupon bond (compounded interest rates are 7% and

Don't need problem 33

semiannually) i 32) What is the price of a $1,000 par value zero coupon bond (compounded interest rates are 7% and it has a maturity of 10 years? a. $258 b. $456 c. $508 d. $503 33) Higher required returns a. decrease stock prices b. are required by the efficient market hypothesis c. increase dividends d. are associated with higher dividends 34) A stock's price will tend to fall if 1. the firm's beta declines 2. the firm's beta increases 3. the risk free rate declines 4. the risk free rate increases a 1 and 3 b. 1 and 4 c. 2 and 3 d. 2 and 4 35) What is the duration of a bond with an 8% coupon and a maturity of 5 years if the current interest rate is 12%? a. 3.97 b. 6.21 c. 4.25 d. 6.57

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