Reference no: EM132528458

1. Jenifar Company has issued 14% $1,000 par value bonds with quarterly compounding and 12 years remaining to its maturity date. Bonds of similar risk are currently selling at a rate of 14 percent You are planning to buy 10 bonds with $10,000 Can you make it ?

2. The Lexus Company last paid their dividend of $2.5 to the stockholders. For the first 4 years the dividend will grow at a 6% and then the rate of growth changes to 4% percent per year for the next 3 years After that the dividend will grow at 3% for the foreseeable future. The required rate of return is 8 percent. If you want to buy the stock maximum how much you should pay for it?

3. Jerry borrowed $35,000 from a bank at 12 percent semiannually compounded interest to be repaid in 5 years. Calculate the total interest paid in the 4th year.