1. CEPS Group offers 5.75 percent coupon bonds with semiannual payments and a yield to maturity of 5.89 percent compounded semiannually. The bonds mature in 4 years. What is the market price per bond if the face value is $1,000?

2. You are purchasing a 19.5-year, zero-coupon bond. The yield to maturity is 6.51 percent compound semi-annually and the face value is $1,000. What is the current market price?

3. CEPS Group has bonds outstanding with a 6.61 percent nominal yield to maturity. The current rate of inflation is 5.2 percent. What is the real rate of return on these bonds?

4. The bonds of CEPS Group sells for OMR 1,191.53. The yield to maturity is 12 percent and the maturity date is 9 years from today. What is the annual coupon rate of this bond if the face value is $1,000?

5. CEPS Group just paid an annual dividend of OMR 1.45 per share. Today, the company announced that future dividends will be increasing by 3.25 percent annually. If you require a 15 percent rate of return, how much are you willing to pay to purchase one share of this stock today?

6. CEPS Group preferred stock pays an OMR 8.5 annual dividend. What is the maximum price you are willing to pay for one share of this stock if your required return is 5.25 percent?

7. The current dividend yield on CEPS Group common stock is 3.75 percent. The company just paid a OMR 2.35 annual dividend and announced plans to pay OMR 2.5 next year. The dividend growth rate is expected to remain constant at the current level. What is the required rate of return on this stock?

8. CEPS Group is going to pay an annual dividend of OMR 2.27 a share on its common stock next year. This year, the company paid a dividend of OMR 2.15 a share. The company adheres to a constant rate of growth dividend policy. What will one share of this common stock be worth five years from now if the applicable discount rate is 8.75 percent?

9. CEPS Group announced today that it will begin paying annual dividends next year. The first dividend will be OMR 0.25 a share. The following dividends will be OMR 0.27, OMR 0.34, OMR 0.45, and OMR 0.52 a share annually for the following 4 years, respectively. After that, dividends are projected to increase by 3 percent per year. How much are you willing to pay to buy one share of this stock today if your desired rate of return is 7.5 percent?

10. CEPS Group just paid an annual dividend of OMR 2.45 a share. The firm plans to increase the annual dividends by 4 percent over the next 3 years. After that time, the dividends will be held constant at OMR 3.5 per share. What is this stock worth today at a 11 percent discount rate?

Question

1. CEPS Group offers 5.75 percent coupon bonds with semiannual payments and a yield to maturity of 5.89 percent compounded semiannually. The bonds mature in 4 years. What is the market price per bond if the face value is $1,000?

2. You are purchasing a 19.5-year, zero-coupon bond. The yield to maturity is 6.51 percent compound semi-annually and the face value is $1,000. What is the current market price?

3. CEPS Group has bonds outstanding with a 6.61 percent nominal yield to maturity. The current rate of inflation is 5.2 percent. What is the real rate of return on these bonds?

4. The bonds of CEPS Group sells for OMR 1,191.53. The yield to maturity is 12 percent and the maturity date is 9 years from today. What is the annual coupon rate of this bond if the face value is $1,000?

5. CEPS Group just paid an annual dividend of OMR 1.45 per share. Today, the company announced that future dividends will be increasing by 3.25 percent annually. If you require a 15 percent rate of return, how much are you willing to pay to purchase one share of this stock today?

6. CEPS Group preferred stock pays an OMR 8.5 annual dividend. What is the maximum price you are willing to pay for one share of this stock if your required return is 5.25 percent?

7. The current dividend yield on CEPS Group common stock is 3.75 percent. The company just paid a OMR 2.35 annual dividend and announced plans to pay OMR 2.5 next year. The dividend growth rate is expected to remain constant at the current level. What is the required rate of return on this stock?

8. CEPS Group is going to pay an annual dividend of OMR 2.27 a share on its common stock next year. This year, the company paid a dividend of OMR 2.15 a share. The company adheres to a constant rate of growth dividend policy. What will one share of this common stock be worth five years from now if the applicable discount rate is 8.75 percent?

9. CEPS Group announced today that it will begin paying annual dividends next year. The first dividend will be OMR 0.25 a share. The following dividends will be OMR 0.27, OMR 0.34, OMR 0.45, and OMR 0.52 a share annually for the following 4 years, respectively. After that, dividends are projected to increase by 3 percent per year. How much are you willing to pay to buy one share of this stock today if your desired rate of return is 7.5 percent?

10. CEPS Group just paid an annual dividend of OMR 2.45 a share. The firm plans to increase the annual dividends by 4 percent over the next 3 years. After that time, the dividends will be held constant at OMR 3.5 per share. What is this stock worth today at a 11 percent discount rate?

Accepted Answer

Since you have asked multiple question, we will solve the first question for you. If you want any…