1. What is the price of a bond with the following characteristics:The bond has a face value of $1000, a yield-to-maturity of 8% APR compounded semi-annually, a coupon rate of 10% APR compounded semi-annually (with next payment in 6-months) and will mature in 8 years?
2. Deerborne & Company is considering a bond issue whereby they would pay a coupon with rate less than the markets required yield to maturity.As a result, the bond would be priced:
3. A stock is expected to pay a dividend of $0.95 per share next quarter, and analysts expect it to grow forever at a rate of 2% APR compounded quarterly.What is the price per share if the market requires a return of 15% APR compounded quarterly?

Answer rating: 100% (QA)

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