I need a solution 1. Bond Valuation. Nungesser Corporations outstanding bonds have a $1,000 par...
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1. Bond Valuation. Nungesser Corporations outstanding bonds have a $1,000 par value, a 9% semiannual coupon, 8 years to maturity, and an 8.5% YTM. What is the bonds price? 1,028.60
2. Yield To Maturity. A firms bonds have a maturity of 10 years with a $1,000 face value, have an 8% semiannual coupon, are callable in 5 years at $1,050, and currently sell at a price of $1,100. What are their nominal yield to maturity and their nominal yield to call? YTM=6.617%, YTC=6.4886%
3. Variable growth rates. XYZ Company recently paid a common stock dividend of $1.50 and the management predicts the following dividend growth rates: 7% for next four years, and then turns to 3% forever. The company has a beta of 0.8. The current risk free rate of interest is 4% and the market risk premium is 5%. What is the stock price? $35.71
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