Q-2( Set 2)
Union Local School District has bonds outstanding with a coupon rate of 3.7 percent paid semiannually and 15 years to maturity. The yield to maturity on these bonds is 4.3 percent and the bonds have a par value of $ 5,000. What is the dollar price of the bond?( Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) Q-3( Set 1)
Yan Yan Corp. has a $ 2,000 par value bond outstanding with a coupon rate of 5.5 percent paid semiannually and 16 years to maturity. The yield to maturity of the bond is 5.8 percent. What is the dollar price of the bond?( Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) Q-3( Set 2) A Japanese company has a bond outstanding that sells for 90 percent of its ¥ 100,000 par value. The bond has a coupon rate of 5.7 percent paid annually and matures in 19 years. What is the yield to maturity of this bond?( Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) Q-4( Set 1) The next dividend payment by ECY, Inc., will be $ 1.96 per share. The dividends are anticipated to maintain a growth rate of 4 percent, forever. The stock currently sells for $ 39 per share. What is the dividend yield?( Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) Dividend yield % What is the expected capital gains yield?( Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) Capital gains yield % Q-4( Set 2) 4. Schiller Corporation will pay a $ 3.14 per share dividend next year. The company pledges to increase its dividend by 5 percent per year, indefinitely. If you require a return of 12 percent on your investment, how much will you pay for the company’ s stock today?( Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)