How much are you willing to pay for one share

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1. You are considering an investment for your retirement which would entail $1,000 payments each year for 30 years. The investment will pay 6 percent interest. How much will this investment be worth at the end of the 30 years?

2. UWA Inc. issued a bond with a $1,000 face value and a coupon rate of 8%. If the bond has a life of 5 years, pays annual coupons, and the market rate is 6%, what will be the bond sell for?

3. UWA Candy and Cookies, Inc. pays a constant annual dividend of $5 per share. How much are you willing to pay for one share if you require a 7 percent rate of return?

Reference no: EM131817405

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