NAlpha Co$.\text{'}$s bonds currently sell for $$1,080$ and have a par value of $$1,000.$ They pay a $$100$ annual coupon and have a $15-$year maturity, but they can be called in $5$ years at $$1,125.$ What is their yield to maturity $($YTM$)?*7\mathrm{.}91\%*9\mathrm{.}01\%*9\mathrm{.}53\%*8\mathrm{.}16\%*10\mathrm{.}43\%.$QUESTION $73\mathrm{.}75$ pointsCathay Inc.$\text{'}$s bonds currently sell for $$1,150.$ They have a $6-$year maturity, an annual coupon of $$85,$ and a par value of $$1,000.$ What is their current yield? Set your calculator to at least $4$ decimal places.$*5\mathrm{.}50\%*7\mathrm{.}39\%*6\mathrm{.}80\%$O $8\mathrm{.}56\%8\mathrm{.}98\%$Hadley Industries' outstanding bonds have a $25-$year maturity and $$1,000$ par value. Their nominal yield to maturity is $9\mathrm{.}25\%,$ they pay interest semiannually, and they sell at a price of $$850.$ What is the bond's nominal $($annual$)$ coupon interest rate? Set your calculator to at least $4$ decimal places.$*6\mathrm{.}27\%*6\mathrm{.}60\%*6\mathrm{.}82\%*7\mathrm{.}32\%*7\mathrm{.}70\%$If Do $=$ $$2\mathrm{.}25,$ g $($which is constant$)=3\mathrm{.}5\%,$ and Po $=$ $$45,$ what is the stock's expected dividend yield for the coming year? Assume that thestock is in equilibrium.$*4\mathrm{.}42\%*4\mathrm{.}66\%*4\mathrm{.}89\%*5\mathrm{.}18\%*5\mathrm{.}39\%$Lori Corporation is expected to pay a dividend of $$1\mathrm{.}25$ per share at the end of the year $($D$1=$ $$1\mathrm{.}25).$ The stock sells for $$32\mathrm{.}50$ per share, andits required rate of return is $11\mathrm{.}5\%.$ The dividend is expected to grow at some constant rate, g$,$ forever. What is the equilibrium expected growth rate? Set your calculator to at least $4$ decimal places. $6\mathrm{.}33\%06\mathrm{.}49\%6\mathrm{.}65\%07\mathrm{.}21\%7\mathrm{.}65\%$Nanny Hardware has an outstanding issue of perpetual preferred stock with an annual dividend of $$7\mathrm{.}50$ per share. If the required return on this preferred stock is $6\mathrm{.}75\%,$ at what price should the preferred stock sell?$*$ $$104\mathrm{.}27*$ $$106\mathrm{.}95*$ $$109\mathrm{.}69*$ $$111\mathrm{.}11*$ $$115\mathrm{.}38$The Peterson Company just paid a dividend of $$0\mathrm{.}75$ per share, and that dividend is expected to grow at a constant rate of $5\mathrm{.}50\%$ per year in the future. The company's beta is $1\mathrm{.}15,$ the market risk premium is $5\mathrm{.}00\%,$ and the risk$-$free rate is $4\mathrm{.}00\%.$ What is Peterson's current stock price, Po$?*$ $$18\mathrm{.}62*$ $$19\mathrm{.}08*$ $$19\mathrm{.}56*$ $$20\mathrm{.}05*$ $$24\mathrm{.}82$Viacon's stock is selling for $$15$ per share. The firm's income, assets, and stock price have been growing at an annual $15$ percent rate and are expected to continue to grow at this rate for $3$ more years. No dividends have been declared yet, but the firm intends to declare a dividend ofD$3=$ $$2\mathrm{.}00$ at the end of the last year of its supernormal growth. After that, dividends are expected to grow at the firm's normal growth rate of $6$percent. The firm's required rate of return is $18$ percent. The stock is$*$ Undervalued by S$3\mathrm{.}03.*$ Overvalued by $$3\mathrm{.}03.*$ Overvalued by $$2\mathrm{.}42.*$ Overvalued by $$2\mathrm{.}25.*$ Undervalued by $$2\mathrm{.}25$