Meade Corporation bonds mature in 17 years and have a yield to maturity of 13.5 percent.  The par value of the bonds is $1,000.  The bonds have a 6 percent coupon rate and pay  interest on a semiannual basis.  What are the current yield and capital gains yield on the  bonds for this year? (Assume that interest rates do not change over the course of the  year.)

A stock with a required rate of return of 13 percent sells for $28 per share. The stock’s  dividend is expected to grow at a constant rate of 3.6 percent per year. What is the  expected year-end dividend, D1, on the stock?

A 21-year bond with a par value of $1,000 has a 5.7 percent annual coupon. The bond  currently sells for $842.  If the bond’s yield to maturity remains at its current rate,  what will be the price of the bond 3 years from now?

Which of the following bond prices is most sensitive to changes in interest rates?

The last dividend paid by Klein Company was $6.9.  Klein’s growth rate is expected to be  a constant 8 percent for 3 years, after which dividends are expected to grow at a rate  of 3 percent forever.  Klein’s required rate of return on equity (rs) is 15 percent.   What is the current price of Klein’s common stock? 

A share of preferred stock pays a quarterly dividend of $3.8.  If the price of this preferred  stock is currently $149, what is the nominal annual rate of return?

Meade Corporation bonds mature in 15 years and have a yield to maturity of 12 percent.  The par value of the bonds is $1,000.  The bonds have a 12.3 percent coupon rate and pay  interest on a semiannual basis.  What are the current yield and capital gains yield on the  bonds for this year? (Assume that interest rates do not change over the course of the  year.)

Palmer Products has outstanding bonds with an annual 5.1 percent coupon.  The bonds have a par value of $1,000 and a price of $1,162.  The bonds will mature in   17 years. What is the yield to maturity on the bonds?

The Jones Company has decided to undertake a large project. Consequently, there is a  need for additional funds.  The financial manager plans to issue preferred stock with a  perpetual annual dividend of $5.6 per share and a par value of $69.  If the required return  on this stock is currently 17.5 percent, what should be the stock’s market value?

A share of preferred stock pays a semiannual dividend of $2.9.  If the price of this preferred  stock is currently $88, what is the nominal annual rate of return?