### Price of bond, Required rate of return (yield) on preferred stock, Price of the common stock

1. Burns Fire and Casualty Company has $1000 par value bonds outstanding at 11% interest. The bonds will mature in 20 years. Compute the current price of the bond if the present yield to maturity is at 6%. (Interest payments are on an annual basis) 3. Analogue Technology has preferred stock outstanding that pays a $9 annual d