Reference no: EM13584917

Please show step by step how to calculate using a HP 10bII Financial Calculator: <br/> <br/>Question 1: A 20-year bond pays a coupon of 8 percent per year (coupon paid semi-annually). The bond has a par value of $1000. What will the bond sell for if the nominal YTM is: <br/> <br/>a) 10 percent. <br/>b) 6 percent. <br/>c) 8 percent. <br/> <br/>Question 2: Stock A has settled into a constant dividend growth pattern of 6 percent per year. The current dividend is $1.50, its current price is $15.90. You are an analyst and believe that the required return on Stock B is the same as that on Stock A. If Stock B pays a constant dividend of $ 2, what is your estimate of Stock B’s price? <br/> <br/>Question 3: Sega Inc. expects earnings/dividends to grow at an annual rate of 30 percent for the next 4 years. After that they feel that the market will get saturated and the growth rate will stabilize at 8 percent per year into the foreseeable future. If current dividend is $1.60 per share and investors require a 14 percent annual return on Sega stock, what is a fair price for a share of Sega''s stock today?