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# Bavarian Sausage, Inc. has preferred stock outstanding. This stock pays a semiannual dividend of \$1.

1. Bavarian Sausage, Inc. has preferred stock outstanding. This stock pays a semiannual dividend of \$1.25. If the next dividend is paid six months from now and the annual required return is 10%, what should be the value of the preferred stock?
2. A 15-year, 8%, \$1000 face value bond is currently trading at \$958. The yield to maturity of this bond must be.
3. Bavarian Sausage just issued a 10 year 7% coupon bond. The face value of the bond is \$1,000 and the bond makes annual coupon payments. If the required return on the bond is 10%, what is the bond's price?
4. Bavarian Sausage just issued a 10-year 12% coupon bond. The face value of the bond is \$1,000 and the bond makes annual coupon payments. If the bond is trading at \$967.25, what is the bond's yield to maturity?

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