1. On October 30, 2008, Altria Group will issue a 5% coupon bond with $1000 par value and semiannual coupon payments. The bonds will mature on October 30, 2018. Based on the prices of bonds with similar risk characteristics, you have determined that the bonds should have a yield to maturity of 5.81%. What is the maximum price you would pay for the bond?

2. Consider the following two mutually exclusive projects:

Year Project A Project B
0 -180,000 -18,000
1 10,000 10,000
2 25,000 5,000
3 25,000 3,000
4 380,000 2,000

Calculate the internal rate of return, and net present value. Assume a discount rate of 15%. Which project should be selected?



3.IBM just paid a dividend of $1.6 per share. You expect IBM's dividend to grow at a rate of 9% per year for the next three years, and then you expect constant dividend growth of 4% forever. Based on the risk of IBM stock, you require a return of 13%. Using the dividend discount model, what is the value of IBM stock?




문제 풀이과정을 알려주시기를 부탁드립니다.!

수고하세요!!