Data Sets Updated

Financial Data Sets:

7-21 Compute Bond Price Compute the price of a 3.8 percent coupon bond with 15 years left to maturity and a market interest rate of 6.8 percent. (Assume interest payments are semiannual.) Is this a discount or premium bond? ( LG7-4 )

7-22 Compute Bond Price Compute the price of a 5.6 percent coupon bond with ten years left to maturity and a market interest rate of 7.0 percent. (Assume interest payments are semiannual.) Is this a discount or premium bond? ( LG7-4 )

8-19   Value a Constant Growth Stock Financial analysts forecast Safeco Corp.’s (SAF) growth rate for the future to be 8 percent. Safeco’s recent dividend was $0.88. What is the value of Safeco stock when the required return is 12 percent? ( LG8-5 )

8-21   Expected Return Ecolap Inc. (ECL) recently paid a $0.46 dividend. The dividend is expected to grow at a 14.5 percent rate. At a current stock price of $44.12, what is the return shareholders are expecting? ( LG8-5 )

9-33  Risk, Return, and Their Relationship Consider the following annual returns of Estee Lauder and Lowe’s Companies:

Compute each stock’s average return, standard deviation, and coefficient of variation. Which stock appears better? Why? (LG9-3, LG9-4)