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Directions You are asked to answer the question given. Please choose the best answer to the question.   If I have questions about Spanish grammar or a general question about any other academic subject, what should I do?

An investment will pay $600 at the end of each of the next 4 years, $500 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 8 percent annually?

Schallheim Corporation’s outstanding bonds have a $1,000 par value, a 14 percent semiannual coupon, 17 years to maturity, and an 11.5 percent yield to maturity (YTM).  What is the bond’s price?

A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 6.4%. What is the stock’s current price?

Martinez Motors’ bonds have 18 years remaining to maturity.  Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 9 percent; and the yield to maturity is 8.5 percent.  What is the bond’s current market price?

An annual coupon bond that matures in 17 years sells for $759.35.  It has a face value of $1,000 and a yield to maturity of 10 percent.  What is its current yield (CY)?

What is the present value of a perpetuity that pays $500 per year if the discount rate is 9 percent?

What is the present value of a security that will pay $3,000 in 30 years if securities of equal risk pay 13 percent annually?

A firm’s bonds have a maturity of 15 years with a $1,000 face value, a 10 percent semiannual coupon, are callable in 4 years at $1,050, and currently sell at a price of $1,126.  What is their yield to call (YTC)?

Your uncle has $375,000 and wants to retire. He expects to live for another 25 years, and he also expects to earn 7.5% on his invested funds. How much could he withdraw at the beginning of each of the next 25 years and end up with zero in the account?