AccountingQuestion 1Dan is going to buy a 19-year bond that pays a coupon rate of 11.56% per year, and has a $1,000 par value. The bond currently priced at $1,326.92? What is the yield to maturity of this bond? Assume annual coupon payments.Round the answer to two decimal places in percentage formQuestion 2Try to determine the required rate of return on Mary Farm Corporations common stock. The firms beta is 1.6. The rate on a 10-year treasury bond is 2.38 percent, and the market return is 8.06 percent.Round the answers to two decimal places in percentage form.All the work has to be shown!Question 3You hold a portfolio with the following securities:Security Percent of portfolio Beta Stock A 23% 1.50 Stock B 48% 1.32 Stock C 29% 1.87Calculate the beta portfolio.Round the answers to two decimal places.All the work has to be shown!Question 4Calculate the expected return on stock:State of the economy Probability of the state Percentage returns on stock Economic recession 25% -8.5% Boom 12% 15.6% Steady economic growth 63% 3.4%Round the answers to two decimal places in percentage form.All the work has to be shown!Question 5The Black Bear Company just paid an annual dividend of $5.98. If you expect a constant growth rate of 8% percent, and have a required rate of return of 12.65 percent, what is the current stock price according to the constant growth dividend model (Gordon model)?Round the answers to two decimal places.All the work has to be shown!Question 6You are considering the purchase of a share of Blue Grass, Inc. common stock. You expect to sell it at the end of one year for $87 per share. You will also receive a dividend of $5.36 per share at the end of the next year. If your required return on this stock is 7.39 percent, what is the most you would be willing to pay for Blue Grass, Inc. common stock now?Round the answer to two decimal places.All the work has to be shown!Question 7What is the value of a bond that has a par value of $1,000, a coupon rate of 17.24 percent (paid annually), and that matures in 8 years? Assume a required rate of return on this bond is 13.53 percent.Round the answer to two decimal places.All the work has to be shown!Question 8General Mills has a $1,000 par value, 12-year bond outstanding with an annual coupon rate of 3.60 percent per year, paid semiannually. Market interest rates on similar bonds are 12.70 percent. Calculate the bonds price today.Round the answer to two decimal places.All the work has to be shown!
Accounting Academic Essay
August 8th, 2017 admin