What is the market value of the bond

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Reference no: EM132015207

You will deposit $8,000 today. It will grow for 7 years at 10% interest compounded semiannually. You will then withdraw the funds annually over the next 5 years. The annual interest rate is 8%. Your annual withdrawal will be: Use Appendix A and Appendix D. (Round "PV Factor" and "FV Factor" to 3 decimal places.)

$2,700

$3,967

$5,222

$7,214

A sixteen-year bond, with par value equals $1,000, pays 12% annually. If similar bonds are currently yielding 10% annually, what is the market value of the bond? Use semi-annual analysis. Use Appendix B and Appendix D. (Round "PV Factors" to 3 decimal places, intermediate calculations and final answer to 2 decimal places.)

$1,458.18

$1,308.18

$1,108.18

$1,158.18

An issue of common stock's most recent dividend is $3.45. Its growth rate is 4.0%. What is its price if the market's rate of return is 9.2%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

$71.35

$69.00

$76.35

$33.17

An issue of common stock is selling for $56.60. The year end dividend is expected to be $3.15 assuming a constant growth rate of 5%. What is the required rate of return? (Round your answer to 1 decimal place.)

11.1

10.1

12.6

10.6

Reference no: EM132015207

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