Question
1..... Bombay Company has issued $1,000 par value bonds that are currently selling for $933.89. The bonds have a coupon rate of 9% and are
1..... Bombay Company has issued $1,000 par value bonds that are currently selling for $933.89. The bonds have a coupon rate of 9% and are paying interest semiannually. What is the yield-to-maturity on these bonds if they have 8 years until they reach maturity? Select one: A. 9.49% B. 8.03% C. 9.44% D. 10.23%
2....A 20-year $1,000 par value bond pays a coupon rate of interest of 12%. If similar bonds are currently yielding 9%, what is the market value of the bond? Assume semi-annual coupon payments. Select one: A. $1,236.45 B. $1,273.86 C. $1,323.80 D. $1,276.02
3... At the end of the coming year, State Street Corporation will pay a dividend of $4.75 per share on its common stock. The required rate of return is 11%. The firm expects dividends to grow at a constant rate of 6%. What is the value of a share of State Street's stock? Select one: A. $36 B. $67 C. $80 D. $95
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