1 a bond with a 5 percent coupon 50 a year that matures

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1. A bond with a 5 percent coupon ($50 a year) that matures after eight years is selling for $779. What is the yield to maturity?

2. If a preferred stock pays an annual $4.50 dividend, what should be the price of the stock if comparable yields are 10 percent? What would be the loss if yields rose to 12 percent?

3.What is the value of a $1,000 zero coupon government bond that matures after eight years, if comparable yields are 7%?

Reference no: EM13374881

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