Hope bonds have a coupon rate of 7% and mature in 7 years. Assuming semi-annual coupons...

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Hope bonds have a coupon rate of 7% and mature in 7 years.Assuming semi-annual coupons with face value of $100, what is thevalue of this bond? Similar bonds yield 6%.
a.
The value of this bond is $39.54.
b.
The value of this bond is $106.58.
c.
The value of this bond is $105.65.
d.
The value of this bond is $94.54.
Dewyco has preference stock trading at $50 per share. The nextpreference dividend of $4 is due in one year. What is Dewyco’s costof capital for preference share?
a.
The cost for Dewyco’s preference share is 12.5% per annum.
b.
The cost for Dewyco’s preference share is 9% per annum.
c.
The cost for Dewyco’s preference share is 8% per annum.
d.
The cost for Dewyco’s preference share is 20% per annum.
What is the effective annual interest rate corresponding to anominal interest rate of 7.5% per annum, compounding daily (assume365 days in a year)?
a.
The effective annual interest rate is 8.10%.
b.
The effective annual interest rate is 7.79%.
c.
The effective annual interest rate is 7.5%.
d.
The effective annual interest rate is 7.46%

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Answer to Question 1 Face Value 100 Annual Coupon Rate 700 Semiannual Coupon Rate 350 Semiannual Coupon 350 100 Semiannual Coupon 350 Annual YTM 600 Semiannual See Answer

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Hope bonds have a coupon rate of 7% and mature in 7 years.Assuming semi-annual coupons with face value of $100, what is thevalue of this bond? Similar bonds yield 6%.a.The value of this bond is $39.54.b.The value of this bond is $106.58.c.The value of this bond is $105.65.d.The value of this bond is $94.54.Dewyco has preference stock trading at $50 per share. The nextpreference dividend of $4 is due in one year. What is Dewyco’s costof capital for preference share?a.The cost for Dewyco’s preference share is 12.5% per annum.b.The cost for Dewyco’s preference share is 9% per annum.c.The cost for Dewyco’s preference share is 8% per annum.d.The cost for Dewyco’s preference share is 20% per annum.What is the effective annual interest rate corresponding to anominal interest rate of 7.5% per annum, compounding daily (assume365 days in a year)?a.The effective annual interest rate is 8.10%.b.The effective annual interest rate is 7.79%.c.The effective annual interest rate is 7.5%.d.The effective annual interest rate is 7.46%

	a.	The value of this bond is $39.54.
	b.	The value of this bond is $106.58.
	c.	The value of this bond is $105.65.
	d.	The value of this bond is $94.54.

	a.	The cost for Dewyco’s preference share is 12.5% per annum.
	b.	The cost for Dewyco’s preference share is 9% per annum.
	c.	The cost for Dewyco’s preference share is 8% per annum.
	d.	The cost for Dewyco’s preference share is 20% per annum.

	a.	The effective annual interest rate is 8.10%.
	b.	The effective annual interest rate is 7.79%.
	c.	The effective annual interest rate is 7.5%.
	d.	The effective annual interest rate is 7.46%