1) Clock and Cane Company. has 6.8%, annual coupon bonds on the market with twelve years left to maturity. If the bond currently sells for $989.45, what is its YTM? (Par value = $1,000)

2) If nominal interest rate are currently 3.05 percent and the inflation rate is 1.89 percent, what is the approximate real interest rate?

3) Based on the dividend growth model, the value of common stock decreases with growth rate of dividends. T/F?