EXERCISES

$1)$ In $2024,$ Patrick acquired a bond worth $$7,500$ with a coupon rate of $6\mathrm{.}25\%.$ The market offers the similar bond with $5-$year maturities and $4\mathrm{.}75\%.$ What would the present value of this bond be$?$ In addition, determine the premium or discount for the bond if apply.

$2)$ In $2005,$ ABC Company bought a bond with a face value of $$7,500,5\mathrm{.}75\%$ coupon rate and $20$ years of maturity. After $7$ years, ABC Company wants to know the present value of the bond, while the same bond is offered at $6\mathrm{.}30\%$ by Treasury. Determine the ABC Company$$s bond value at the time. In addition, determine the premium or discount for the bond if apply.

$3)$ The Soft$-$Computer company$$s stock price is expected to be worth $$160$ at the end of the year, with a dividend distribution of $$3\mathrm{.}75$ per share. If the rate of return on the stock is valued at $15\%,$ determine the current price of the company$$s stock.

$4)$ For a common stock from T&Y Cleaning, the actual price is $$62\mathrm{.}25$ and $12\%$ of rate of return. At the end of the year, T&Y Cleaning understands that they will pay dividend for $$2\mathrm{.}45$ per common stock. Calculate the price at the end of the year.

$5)$ Simon bought a common stock from Monona Air Cleaners Inc. at $$35$ per share for January $5,2020$ and he expected for the price per share to increase by $$8$ for December $31,2020.$ If Monona Air Cleaners will pay $$1\mathrm{.}75$ for dividend per share, what would the expected rate of return of Simon$$s shares be$?$