to the nearest cent.) i Data Table (Click on the following icon E in order to copy its contents into a spreadsheet.) Years to Yiold to Par Vaiue Coupon Rale Maturity Malurity Price $1,000.00 6% 15 8% $5,000.00 9% 9% ? $5,000.00 5% 10 5% $1,000.00 11% 15 10% Print Done

Clear my choice Gordon Growth Company is expected to pay a dividend of $4 next period and dividends are expected to grow at 6% per year. The required return is 16%. What is the price expected to be in year 4? O a. $10 O b. $50.50 c. $41.6 O d. $40 Clear my choice 11 intend to purchase a 10-year $1.000 face value bond that pays interest of $60 every

mai places. Dona in the following table: (Round to the nearest cent) Years to Maturity 6 Data Table Par Value Coupon Rate $5,000.00 6% 20 (Click on the following icon O in order to copy its contents into a spreadsheet.) Yield to Maturity 8% Years to Par Value Maturity Price Couronitate 6% 7% 12% 10% $5,000.00 20 5. $5.000.00 $1.000.00 9% 10 11% $1.000.00 30 5% Print Done

Use the graph to answer the following questions. 1.  What is the value of a 15-year 10% $1,000 coupon bond when the market interest rate is 15%? $421 $708 $1,000 $1,519   2.  What is the value of a 12-year 10% $1,000 bond when the market interest rate is 5%? $1,000 $1,050 $1,443 $2,200   3.  What is the value of a 10-year 10% $1,000 bond when the market interest rate is 10%? $900 $975 $1,000 $1,050   4.  For a 10% $1,000 coupon bond, when the market interest rate is greater than 10%, the value of the bond: Is unaffected and still equals its par value of $1,000. Is less than its par value of $1,000. Is greater than its par value of $1,000. Cannot determine because it depends on the term of the bond in years.   5.  For a 10%, $1,000 coupon bond, a longer-term bond (say, 15 years) is: less affected by changes in the market rate than a 1-year bond. affected the same by changes in the market rate than a 1-year bond. more affected by changes in the market rate than a 1-year bond.…