bond and share

The $1,000 face value ABC bond has a coupon rate of 4%, with interest paid semi-annually, and matures in 3 years. If the bond is priced to yield 8%, what is the bond's value today?

• $918.98

• $895.16

• $920.89

• $918.89

The KLM bond has a 8% coupon rate (with interest paid semi-annually), a maturity value of $1,000, and matures in 5 years. If the bond is priced to yield 6%, what is the bond's current price?

• $1,058

• $1,085

• $1,185

• $1,000

What is the value of Stock in which you expect a dividend of $300 a year indefinitely. You feel you should obtain a 10% return based on the risk you are taking

• $3,000

• $3,500

• $6,000

• $5,000

Cemex, a large cement provider, issued a 10 percent coupon interest rate, 5-year bond with a $1,000 par value. The market rate for a bond like this (risk level of company and maturity rate) is 11 percent. How much should these bonds sell for in the marketplace?

• $963.04

• $960.00

• $1063.04

• $1000

You just bought IBM bonds that mature in four years. You paid $1,000 (par value). The bonds have a coupon rate of 8 percent. If interest rates fall and the required return on your bond is now 6 percent, what is the value of your bond?

• $2,229.25

• $1,292.30

• $1,069.30

• $1,222.50

You also own an IBM bond that matures in two years. Let’s assume it is selling for $1,000 on the open market and has a coupon rate of 8 percent. If interest rates fall and the required return on your bond is now 6 percent, what is the value of your bond

• $1,037

• $1,337

• $1,073

• $1,000

Calculate Value of bond (price of bond) for the following bond;

A 10 years, 11% coupon bond that will mature in another 3 years and the market return is 14%

• RM 930.35

• RM 940.38

• RM 990.38

• RM 1000

The Pancake House pays a constant annual dividend of RM1.25 per share and expected to sell at RM 50. How much are you willing to pay for one share if you require a 15 percent rate of return?

• RM44.56

• RM1.87

• RM38.75

• RM11.04

Healthy Foods just paid its annual dividend of RM1.45 a share. The firm recently announced that all future dividends will be increased by 2.8 percent annually. What is one share of this stock worth to you if you require a 14 percent rate of return?

• RM12.56

• RM13.20

• RM14.07

• RM16.68

A company expected to pay a dividend of $0.95 per share. After that, the dividends are expected to grow at a rate of 8% p.a. indefinitely. Calculate the price of

one share in the company if the required rate of return is 9% p.a.

• $96

• $97

• $95

• $99