I really need help on all of them

Practice Problems: Bond and Stock Valuation

Bond Valuation: Find the value of the following bonds and explain why the value differs from par:

1) Coupon 8%, semi-annual

Maturity 25 years

Rating A

Yields on other A rated bonds maturing in 25 years: 9.5%

2) Coupon 7.5% semi-annual

Maturity 10 years

Rating BBB

Yields on other BBB rated bonds maturing in 10 years: 6.5%

Find the yield to maturity on the following bonds:

3) Price 107%

Maturity 7 years

Coupon 9% semi-annual

4) Price 95%

Maturity 5 years

Coupon 8.6 % semi-annual

5) Price $870

Maturity 22 years

Coupon 7% semi-annual

Common Stock Valuation

6) You expect a companys earnings and dividends to grow at a steady rate of 4%. It justpaid a dividend of $3. The company has a beta of 1.25, the risk free rate is 4%, and therequired return on the market is 11%. How much would you pay for this stock?

7) The stock you are thinking about buying just paid a dividend of $5. You project thefollowing dividends: next year $7, in two years $12, in 3 years $15 and in four years$21. After Year 4 you expect dividends to grow at a constant rate of 6% per year. Thecompany has a beta of 2.1, the risk free rate is 4% and the required return on the marketis 11%. How much would you be willing to pay for the stock today?