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  1. A 20-year bond pays 7% annually on a face value of
    $1,000. If similar bonds are currently yielding 4%, what is the
    market value of the bond?

  1. A 10-year bond, with a par value equaling $1,000, pays 8%
    annually. If similar bonds are currently yielding 7% annually, what
    is the market value of the bond? Use semi-annual
    analysis.
  1. A 10-year zero-coupon bond that yields 9% is issued with
    a $1,000 par value. What is the issuance price of the bond?
  1. An issue of preferred stock is paying an annual dividend
    of $1.60. The growth rate for the firm’s common stock is 5%. What
    is the preferred stock price if the required rate of return is
    7%?
 
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