1. A coupon bond due in one year pays interest semi-annually is selling at $1,010 (par value is ＄1,000), and has a coupon rate of 8%.The yield to maturity on this bond is
2. You are considering acquiring a common stock that you would like to hold for one year. You expect to receive both ＄1.5 in dividends and $35 from the sale of the stock at the end of the year. The maximum price you would pay for the stock today is _____ if you wanted to earn a 10% return.
3 TKU has an expected ROE of 20%. If the firm follows a policy of paying 60% of earnings in the form of dividends.The dividend growth rate will be?
4. You have just purchased a 4-year zero-coupon bond at ＄900 and the par value of ＄1,000. What is the yield to maturity?
5. A coupon bond that pays interest semi-annually has a par value of ＄1,000, matures in 2 years, and has a yield to maturity of 10%. If the coupon rate is 12% (per year) and then what is the intrinsic value of the bond today.
