Calculate the yield to maturity

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Q1. Suppose a bond has a face value of $ 3,000, 10 years to maturity, an annual coupon of 7%, and is selling for $ 2,800. Calculate yield to maturity (YTM). Calculate the price 4 years from now, assuming the yield to maturity remains constant.

Q2. Suppose Roberto is considering a 12-year bond with a face value of $ 2,000 and a rate of 8% payable semi-annually. Calculate the payment Roberto would have to make if an "effective" annual interest rate of 8.2% were required.

Q3. The River Industries company paid $ 2.00 in dividends per share. The dividend is expected to increase 10% annually for the next 4 years and 6% in the remaining years. Calculate the expected dividend per share for each of the 6 years.

Reference no: EM133096380

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