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BUSN 602 Can someone Answer these 10 Questions?

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BUSN 602 Can someone Answer these 10 Questions?

  1. The Wall Street Journal reports that the rate on 9-year Treasury securities is 6.85 percent and the rate on 10-year Treasury securities is 7.15 percent. The 1-year risk-free rate expected in nine years is, E(10r1), is 7.75 percent. According to the liquidity premium hypotheses, what is the liquidity premium on the 10-year Treasury security, L10? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
2.       NikkiG’s Corporation’s 10-year bonds are currently yielding a return of 6.15 percent. The expected inflation premium is 1.10 percent annually and the real risk-free rate is expected to be 2.30 percent annually over the next ten years. The liquidity risk premium on NikkiG’s bonds is 0.35 percent. The maturity risk premium is 0.20 percent on 3-year securities and increases by 0.03 percent for each additional year to maturity. Calculate the default risk premium on NikkiG’s 10-year bonds. (Round your answer to 2 decimal places.)
  1. The Wall Street Journal reports that the rate on 5-year Treasury securities is 1.80 percent and the rate on 6-year Treasury securities is 2.35 percent. According to the unbiased expectations theories, what does the market expect the 1-year Treasury rate to be five years from today, E(6r1)? (Do not round intermediate calculations and round your answer to 2 decimal places.)
  1. A 6.05 percent coupon bond with 18 years left to maturity can be called in six years. The call premium is one year of coupon payments. It is offered for sale at $1,085.50. What is the yield to call of the bond? (Assume interest payments are semiannual.) (Round your answer to 2 decimal places.)
  1. A 4.80 percent coupon bond with 16 years left to maturity is offered for sale at $964.11. What yield to maturity is the bond offering? (Assume interest payments are semiannual.) (Round your answer to 2 decimal places.)
  1. Compute the price of a 6.4 percent coupon bond with ten years left to maturity and a market interest rate of 8.0 percent. (Assume interest payments are semiannual.) (Do not round intermediate calculations and round your final answer to 2 decimal places.)
  1. A 5.85 percent coupon bond with ten years left to maturity is priced to offer a 6.7 percent yield to maturity. You believe that in one year, the yield to maturity will be 6.0 percent. What is the change in price the bond will experience in dollars? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
8.       A firm does not pay a dividend. It is expected to pay its first dividend of $0.36 per share in two years. This dividend will grow at 8 percent indefinitely. Use a 9.5 percent discount rate.
Compute the value of this stock. (Round your answer to 2 decimal places.)
9.       A firm is expected to pay a dividend of $1.55 next year and $1.70 the following year. Financial analysts believe the stock will be at their price target of $50 in two years.
Compute the value of this stock with a required return of 11.5 percent. (Round your answer to 2 decimal places.)
10.    Paychex Inc. (PAYX) recently paid an $0.86 dividend. The dividend is expected to grow at a 10 percent rate. The current stock price is $54.51.
What is the return shareholders are expecting? (Do not round intermediate calculations and round your final answer to 2 decimal places.)