Problem
i. What's the current yield of a 6 percent coupon corporate bond quoted at a price of 102.20?
ii. What's the taxable equivalent yield on a municipal bond with a yield to maturity of 8.25 percent for an investor in the 33 percent marginal tax bracket?
iii. At your discount brokerage firm, it costs $10.65 per stock trade. How much money do you need to buy 500 shares of Ralph Lauren (RL), which trades at $85.27?
iv. If a preferred stock from Pfizer Incorporated (PFE) pays $18.00 in annual dividends, and the required return on the preferred stock is 7.00 percent, what's the value of the stock?