Coupon Rates and Bond Prices

Complete the following problems: 5- Coupon Rates – Gabrielle Enterprises has bonds on the market making annual payments, with eight years to maturity, a par value of $1,000, and selling for $948. At this price, the bonds yield 5.1 percent. What must the coupon rate be on the bonds? 6- Bond Prices – Weismann Co. issued 15-year bonds a year ago at a coupon rate of 5.3 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 4.5 percent, what is the current bond price? 7- Bond Yields – West Corp. issued 25-year bonds two years ago at a coupon rate of 5.3 percent. THe bonds make semiannual payments. If these bonds currently sell 105% of par value, what is the YTM? 14- Nominal and Real Returns – Say you own an asset that had a total return last year of 11.65%. If the inflation rate last year was 2.75%, what was your real return? 26- Using Bond Quotes – Suppose the following bond quotes IOU Corporation appear in the financial page of today’s newspaper. Assume the bond has a face value of $2,000 and the current date is April 19, 2018. What is the yield to maturity of the bond? What is the current yield? 31- Real Cash Flows – You want to have $2.5 million in real dollars in an account when you retire in 40 years. The nominal return on your investment is 10.3% and the inflation rate is 3.7%. What real amount must you deposit each year to achieve your goal? 5(Page 265) – Common versus Preferred Stock – Suppose a company has a preferred stock issue an a common stock issue. Both have just paid a $2 dividend. Which do you think will have a higher price, a share of the preferred or a share of the common? 12(Page 266) – Stock Valuation and PE – The Perfect Rose Co. has earnings of $3.18 per share. The benchmark PE for the company is 18. What stock price would you consider appropriate? What if the benchmark PE were 21? 15 – Nonconstant Growth – Metalica Bearings, Inc., is a young start up company. No dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fueld frowth. The company will pay a dividend of $17 per share 10 years from today and will increase the dividend by 3.9 percent per year thereafter. If the required return on this stock is 12.5 percent, what is the current share price? 16 – Nonconstant Dividents. Maurer, Inc., has an odd dividend policy. The company has just paid a dividend of $2.75 per share and has announced that it will increase the dividend by $4.50 per share for each ofthe next five years and then never pay another dividend. If you require a return of 11 percent on the company’s stock how much will you pay for a share today? 18 – Supernormall Growth – Synovec Co. is growing quicky. Dividends are expected to grow at a rate of 30 percent for the next three years, with the growth rate falling of to a constant 4 percent thereafter. If the required return is 11 percent, and the company just paid a dividend of $2.45, what is the current share price? 20 – Negative Growth- Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $9.80, but management expects to reduce the payout by 4 percent per year indefinitely. If you require a return  of 9.5 percent on this stock, what will you pay for a share today?

Don't use plagiarized sources. Get Your Custom Essay on
Coupon Rates and Bond Prices
From $8/Page
Order Essay
Order NOW For A 10% Discount!
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

Top Writers4me provides the best top-grade academic writing services in compliance with our customers’ instructions. Have your paper written by a certified professional online college homework help writer to produce only high-quality essays with zero plagiarism.

Professional Academic Writers

You can now choose from a pool of online college homework help writers. Choose your writer and have them write the best content for you.Top Writers4me has, over the years, secured a team of the most reliable, experienced, and qualified writers. You can, therefore, trust that your assignment is in good hands.

Affordable Prices

We know that students have very limited budgets. And for that, we always strive to provide only the best, most affordable online college homework help services to our customers. Our goal is to provide top-quality assignment help services to all customers at the lowest, most affordable prices.

On-Time delivery

At, we pay strict attention to deadlines. We recommend you to check out clients’ reviews for assurance that we will complete your assignments within the set deadlines. You can, therefore, trust that your paper will be done within and before the set deadline. Until now, we have not missed a single deadline.

100% Originality

Our homework helper experts write only 100% original and plagiarism-free content for all of our clients. We also have a Quality Assurance Department team that goes through all work submitted by our writers multiple times. You can, therefore, rest assured that any signs of plagiarized or unoriginal content will be rejected before it reaches your portal.

Customer Support 24/7 expert writers are always available 24/7 for customers who need assistance with using our website. You don’t have to check your watch the next time you want to have your assignment written. Our customer support is always available round the clock and ready to listen to your queries. Feel free to contact us via the Chat window or support email:

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

For years now, has stood as a leader in providing its customers with the best online college homework help service in the industry. And all you have to do is provide us with the details of your order. Leave everything else to us. We’ve always got you covered.


Essay Writing Services

Since we launched, deserved the best online “college homework help status” thanks to our essay ordering, writing, and delivery process. We deliver nothing but excellence in our results. Our essay writing services include impeccable grammar, zero-plagiarism, proper structure, and conformance to guidelines.


Admission and Business Papers

Our top-quality online college homework help services guarantee that you will be accepted into your desired university. You just need to fill out your admission and business papers, and our team of online homework help workers will handle the rest. We will help you achieve and secure the best positions in your admissions forms.


Editing and Proofreading

At, we have a skilled writing and editing team that’s dedicated to creating, editing, and restructuring for all types of papers. Our online college homework help editing and proofreading team will check, paraphrase, and correct any grammar mistakes on your paper before submitting the final document to you.


Technical Papers

At, we pride ourselves in having writers in almost all fields, even the most technical ones. You never have to worry about your paper being too technical for our certified online college homework help writers to handle. Mycoursewriter's team of writers can handle even the most complex writers. We will match your paper to the most competent writer that we believe will handle your paper the best way possible.