1) The 4.5 percent bond of XYZ Corporation has a face value of $1,000, a maturity of 15 years, semiannual interest payments, and a yield to maturity of 7.50 percent. What is the current market price of the bond?

a) $732.56

b) $830.27

c) $1,324.68

d) $1,133.72

e) $676.54

2) The Memo.com corporate bonds pay 5 percent interest. You are in the 25 percent marginal tax bracket. What is your after tax yield on this bond?

Group of answer choices

a) 6.25 percent

b) 3.90 percent

c) 3.50 percent

d) 3.75 percent

e) 3.05 percent

3) The required return on a stock is equal to which one of the following if the dividend on the stock decreases by 1 percent per year?

Group of answer choices

a) (P₀/D₁) - g

b) (D₁/P₀)/g

c) Dividend yield + capital gains yield

d) Dividend yield - capital gains yield

e) Dividend yield capital gains yield