What was the dollar amount of the price change on the bond

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1. What is the value of a share of DuPont Series A $3.50 cumulative, perpetual pre- ferred stock to an investor who requires a 6 percent annual rate of return on this security? This preferred stock was originally issued at $102 a share.

2. Use the data in Figure 6.1 to answer the  following:

a. What is the coupon rate and year of maturity for the Thomson Reuters bonds?

b. If you purchased one Kraft Foods bond, what price would you have to pay at the closing trade?

c. Why do you think the yield is greater for the Time Warner bond of 2020 than the Cisco bond of 2020?

3. A U.S. government bond was quoted as:

Rate

Maturity Mo/Yr

Bid

Asked

Chg*

Ask Yld

12

Aug 13

110.12

110.13

+6

4.50

*Chg is in 32nds of a percent.

a. How much would you have to pay for one of these $1,000 face value bonds?

b. What was the dollar amount of the price change on this bond?

Reference no: EM13928488

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