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1. Sand Sweet Corp. issued 20 year bonds three years ago(maturity 2036) with a 7% coupon, with interest paid semi-annually.Market and company circumstances have changed so that the currentrisk factor on the bonds has dropped to 6%. What is the currentmarket price of the bonds? (THINK ABOUT THE CORRECT NUMBER OFINTEREST PAYMENTS; SHOULD PRICE BE MORE OR LESS THAN 1000?)2. Chapter LTD has bonds on the market with fifteen years remaininguntil maturity which are currently selling for $920. The bond payinterest annually; and at the current price the bonds are expectedto yield 7% to new purchasers. What is the coupon rate negotiatedwhen the bonds were first issued? (SOLVE FOR PMT, CONVERT TOCOUPON)3. Rev Inc. expects to pay a $ 1.50 per share cash dividend NEXTYEAR; and projects a growth rate on future dividends of 4%. Ifinvestors require a 7% return on their investment; what is thestock’s current market price? (DGM formula—solve for P)4. The 8.5 percent ANNUAL coupon bonds of Eberly, Inc., WITHINTEREST PAID SEMI-ANNUALLY are currently selling for $1130.12. Thebonds have a face value of $1,000 and mature in 12 years. What isthe yield to maturity required by purchasers of the bondtoday?5. A Biosystems, Inc. bond has a 9% coupon rate and $ 1,000 face(par) value. Interest is paid semi-annually; and bond will maturein 16 years. Current market conditions are such that bonds ofsimilar risk must generate a 12% return. What should be the bond’scurrent market selling price?6. Hit “Em” Straight, Inc. projects that its annual dividends willgrow at the rate of 5.1% annually indefinitely. If it has aDividend yield of 3.4%, what is the required rate of return on thecompany’s common stock?