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The coupon rate of a bond equals:

A firm’s bonds have a maturity of 19 years with a $1,000 face value, a 13 percent semiannual coupon, are callable in 5 years at $1,095, and currently sell at a price of $1,185.  What is their yield to call (YTC)?

An investment will pay $900 at the end of each of the next 3 years, $1,100 at the end of Year 4, and $1,400 at the end of Year 5.  What is its present value if other investments of equal risk earn 8 percent annually?

Suppose you invest $3,200 today in an account that earns a nominal annual rate (inom) of 12 percent, with interest compounded monthly.  How much money will you have after 10 years?

The Herron Company’s cost of common equity is 13 percent, its before-tax cost of debt is 10 percent, and its marginal tax rate is 30 percent.  Given Herron’s market value capital structure below, calculate its WACC. Long-term debt $29,000,000 Common equity   51,000,000 Total capital $80,000,000

An investment will pay $900 at the end of each of the next 4 years, $800 at the end of Year 5, and $600 at the end of Year 6.  What is its present value if other investments of equal risk earn 9 percent annually?

Martinez Motors’ bonds have 6 years remaining to maturity.  Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 7 percent; and the yield to maturity is 5 percent.  What is the bond’s current market price?

A share of common stock just paid a dividend of $1.00. If the expected long-run growth rate for this stock is 5.4%, and if investors’ required rate of return is 11.4%, what is the stock price?

What is the present value of a perpetuity that pays $2,400 per year if the discount rate is 9 percent?

A firm with a 10 percent cost of capital is considering a project for this year’s capital budget.  The project’s expected after-tax cash flows are as follows: Year: 0 1 2 3 4 Cash flow: -$12,000 $5,400 $5,600 $4,100 $5,000 Calculate the project’s discounted payback period.