What is the estimated value per share of boehm stock

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1) Jackson Corporation's bonds have 8 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 7%. The bonds have a yield to maturity of 8%. What is the current market price of these bonds? Do not round intermediate calculations. Round your answer to the nearest cent.

2) Wilson Corporation's bonds have 10 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 7%. The bonds sell at a price of $985. What is their yield to maturity? Round your answer to two decimal places.

3) The real risk-free rate is 2%, and inflation is expected to be 2% for the next 2 years. A 2-year Treasury security yields 4.9%. What is the maturity risk premium for the 2-year security? Round your answer to one decimal place.

4) Renfro Rentals has issued bonds that have a 10% coupon rate, payable semiannually. The bonds mature in 16 years, have a face value of $1,000, and a yield to maturity of 8.5%. What is the price of the bonds? Round your answer to the nearest cent.

5) You just purchased a bond that matures in 4 years. The bond has a face value of $1,000 and a 9% annual coupon. The bond has a current yield of 7.63%. What is the bond's yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places.

6) Boehm Incorporated is expected to pay a $2.70 per share dividend at the end of this year (i.e., D1 = $2.70). The dividend is expected to grow at a constant rate of 5% a year. The required rate of return on the stock, rs, is 16%. What is the estimated value per share of Boehm's stock? Do not round intermediate calculations. Round your answer to the nearest cent.

Reference no: EM132528391

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