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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?

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.)

A share of preferred stock pays a quarterly dividend of $1.5.  If the price of this preferred  stock is currently $42, what is the nominal annual rate of return?

A 11-year bond with a 11.4 percent semiannual coupon and a $1,000 face  value has a nominal yield to maturity of 8.1 percent.  The bond currently sells for  $1,237.31. The bond, which may be called after 5 years, has a nominal yield to  call of 7.54% percent.  What is the bond’s call price?

Womack Toy Company’s stock is currently trading at $18 per share.  The stock’s dividend  is projected to increase at a constant rate of 2 percent per year.  The required rate of  return on the stock, rs, is 5 percent.  What is the expected price of the stock 8 years  from today?

If the required return on a stock is 10% and the constant growth rate is 4% per year, then

A 28-year bond has a 7 percent annual coupon, a yield to maturity of 8 percent, and a face value of $1,000.  What is the price of the bond?

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?

A share of common stock has just paid a dividend of $2.5.  If the expected long-run  growth rate for this stock is 8.4 percent, and if investors require a 20 percent rate of  return, what is the price of the stock?

McKenna Motors is expected to pay a $1 per-share dividend at the end of the year  (D1 = $1).  The stock sells for $28 per share and its required rate of return is 15.7  percent.  The dividend is expected to grow at a constant rate, g, forever.  What is the  growth rate, g, for this stock?