Shinra Enterprises' bonds currently sell for $1,050. They have a 6-year maturity, an annual
coupon of $75, and a par value of $1,000. What is their current yield?
12. A 25-year, $1,000 par value bond has an 8.5% annual payment coupon. The bond currently
sells for $925. If the yield to maturity remains at its current rate, what will the price be 5 years
13. Murdock Corporation's bonds have a 15-year maturity, a 7.25% semiannual coupon, and a
par value of $1,000. The going interest rate (r
) is 6.20%, based on semiannual compounding.
What is the bond's price?
The Isolet Company
a dividend of $0.75 per share, and that dividend is expected to
grow at a constant rate of 5.50% per year in the future. The company's beta is 1.15, the market
risk premium is 5.00%, and the risk-free rate is 4.00%. What is the company's current stock
15. Exusai Inc.'s stock has a required rate of return of 10.25%, and it sells for $57.50 per share.
The dividend is expected to grow at a constant rate of 6.00% per year. What is the expected year-
end dividend, D