Find out values of following bonds. YTM is 7%, and Time to maturity is 10 years...

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Find out values of following bonds. YTM is 7%, and Time to maturity is 10 years (10 points) Bond A: 3.5% of coupon paid semiannually, Face value = $1,000,000 Bond B: 0% of coupon, Face value = $5,000,000 Bond C: 10% of coupon paid annually, Face value = $3,500,000 (2) Find out values of following stocks. The discount rate is 8% (10 points) Stock A: recently paid dividend = $ 3 per share, dividend growth rate as 0% Stock B: recently paid dividend = S 6 per share, dividend growth rate as 4% Stock C: EPS = $ 15, benchmark PER = 3 (3) Firm A has recently paid dividend of $ 14 per share. It is expected that firm A will grow by 15% for next six years and 5% thereafter. It is also known that firm A's beta is 1.5, risk free rate is 1%, and market risk premium is 6%. Estimate the stock value of firm A. (10 points) Find out values of following bonds. YTM is 7%, and Time to maturity is 10 years (10 points) Bond A: 3.5% of coupon paid semiannually, Face value = $1,000,000 Bond B: 0% of coupon, Face value = $5,000,000 Bond C: 10% of coupon paid annually, Face value = $3,500,000 (2) Find out values of following stocks. The discount rate is 8% (10 points) Stock A: recently paid dividend = $ 3 per share, dividend growth rate as 0% Stock B: recently paid dividend = S 6 per share, dividend growth rate as 4% Stock C: EPS = $ 15, benchmark PER = 3 (3) Firm A has recently paid dividend of $ 14 per share. It is expected that firm A will grow by 15% for next six years and 5% thereafter. It is also known that firm A's beta is 1.5, risk free rate is 1%, and market risk premium is 6%. Estimate the stock value of firm A. (10 points)

Answer rating: 100% (QA)

1 Bond A Coupon Rate 35 of 1000000 35000 semiannually Yield to Maturity YTM 7 Time to Maturity 10 years 20 periods since coupon paid semiannually To calculate the bond value we need to discount the fu... View the full answer