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Accounting

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Your client has been offercal a 10 year, $1,000 par value annual bond with a 8 percent corupon rate and an YTM of 12%. Answer Q11Q4. 3. What is the current yicld on the bond? 4. What is the capital gains yicld of on the bond? 5. You have just purchased a 5-year, 51,000 par value bond. The coupon rate ce this bond is 6 percent anmully, with interest being paid each 6 monthis. If you expect to earn a 10 percent simple rate of retum on this bond, how much did you pay for it? 0OC (00/2)1110.112)n201101.2)+1000111+0.1.220 and 10 milion common stocks. Its perferred stock prys ust unnuad ifwident of 51.50 and Answer Q6.Q9. 6. What is the intrinse value of the prefetred stocis? 7. What is the intrinsic value of the common stock? 8. What is the dividend yield of the coenmon stock? 9. What is the capital gains yield of the conumon stock? 10. If you observe the market ptice of ABC stock is $30, the stock wall pay 52.00 dividend per share and grow at 7% forever. What is the required rafe of return on the stock

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