Question 1(1 point)

A bond has a face value of 10,000. The bond matures in 12 years and pays its coupon interest semi-annually. The coupon rate is 9%. Assuming a yield of 8%, what is the price of the bond?

Question 1 options:

A)

10,762.35

B)

11,098.34

C)

9,382.12

D)

9,799.10

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Question 2(1 point)

Zap Power Company pays an annual dividend on its preferred stock of $4.54 per share. The investors have an 8% required rate of return. What is the price of the stock?

Question 2 options:

A)

36.32

B)

12.88

C)

45.50

D)

56.75

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Question 3(1 point)

What is the price of the following common stock? Dividend $2.42, growth rate is 4%, and required rate of return is 11%.

Question 3 options:

A)

24.20

B)

60.50

C)

34.57

D)

22.00