Use semiannual compounding on all bond problems unless otherwise indicated

1. Determine the fair price of a $50 par preferred issue equity security (preferred stock) that pays a 3% dividend annually at a discount rate of 5%.

2. Calculate an investor's RRR if they buy an 8% $40 par preferred stock that is for $50.

3. What is the maximum price an investor with a required rate of return of 12% pay for a $60 par preferred stock that pays an annual dividend of 6%.

4. What would the yield on a $45 par 5% preferred stock be when the market is efficient?

5. Price a share of common stock using the dividend valuation model that paid a $3 dividend last period, has a 6% growth rate when your RRR is 15%.

6. Calculate the investors' required rate of return on a common stock that paid a dividend of $2 one period ago has a growth rate of 3%, and is currently trading at $28.

7. How much would you be willing to pay for a share of common stock that will pay a dividend of $5 this period and has a growth rate of 4% if your required rate of return on investments with similar risk is 9%?

8. You are considering investing in one of two common securities. You have determined that both securities carry similar degrees of risk. Security A has a current price of $40, a growth rate of 4% and one period ago paid a dividend of $4. Security B has a current price of $42, a growth rate of 3.5% and a current dividend of $3.75. Based on the securities returns alone which stock will you invest in?

See attached file.
Use semiannual compounding on all bond problems unless otherwise indicated
1. Will you invest in a security that has a current price of $50, a growth rate of 6% and an expected dividend of $3.80 if your RRR is 12%?
2. Would you invest in the stock in #18 if your RRR was 8%? Would you invest in it if t

1. You invest in an investment that pays 22 equal annual payments of $70 at the beginning of each of the next 22 years. What is the present value of this investment given a discount rate of 2% under annual compounding? Choose and place on the answer sheet the best answer from those provided below and attach your supporting work.

A 5-year annuity of ten $5,300 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now.
1. If the discount rate is 12 percent compounded monthly, what is the value of this annuity five years from now?
2. If the discount rate is 12 percent compounded monthly, what is the value three y

Please use Excel and show a cash flow time line to solve the following:
I'm purchasing a 10-year bond with a $1,000 face value that pays interest of $60 semiannually. The yield to maturity is 10 percent with semiannual compounding. What price should I pay for the bond?

You intend to purchase a 10-year, $1,000 face value bond that pays interest of $60 every 6 months. If your nominal annual required rate of return is 10 percent with semiannual compounding, how much should you be willing to pay for this bond?

A. Table Factor X, Future Value $X
Present Value Rate Time Compounding Frequency Table Factor Future Value
a. $5,000 12% 2 yrs Annual
b. $5,000 12% 2 yrs Semiannual
c. $5,000 12% 2 yrs. Quarterly
d. $5,000 12%

Show the formula used in the following questions in detail
1)
a. What is the future value of $4,000 invested at 6% for 22 years with annual compounding?
b. What is the future value of $4,000 invested at 6% for 22 years with monthly compounding?
c. What is the future value of $4,000 invested at 6% for 22 years with cont

? Calculate the future value of the following:
?
o $5,000 compounded annually at 6% for 5 years
o $5,000 compounded semiannually at 6% for 5 years
o $5,000 compounded quarterly at 6% for 5 years
o $5,000 compounded annually at 6% for 6 years
?
? Answer the following: What conclusions can be drawn about the frequen

Can you help me get started with this assignment?
A BBB-rated corporate bond has a yield to maturity of 8.2%. A US Treasury security has a yield to maturity of 6.5%. These yields are quoted as APR's with semiannual compounding. Both bonds pay semiannual coupons at a rate of 7% and have five years to maturity.
a. What is