1. What is the coupon rate of a two-year, $5,000 bond with semiannual coupons and a price of $4,841.01, if it has a yield to maturity of 6.3%?

A) 4.583% B)5.5%. C) 6.416%. D) 3.666%

2. What is the yield to maturity of a eight-year, $10,000 bond with 5.3% coupon rate and semiannual coupons is currently trading for a price of $9,105?

A) 3.38% B) 6.77% C)9.49% D)8.12%

3. A company has stock which costs $42.75 per share and pays a dividend of $2.70 per share this year. The companys cost of equity is 7%. What is the expected annual growth rate of the companys dividends? ???

A) 0.68% B) 2.04% C) 2.72% D)1.36%

4. A company issues a ten-year bond at par with a coupon rate of 6.6% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 9.3%. What is the new price of the bond?

A) $1,190 B) $1,020 C)$850 D)$1,000

5. The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in nine years. The bond certificate indicates that the stated coupon rate for this bond is 8.4% and that the coupon payments are to be made semiannually. Assuming that this bond trades for $5,719, then the YTM for this bond is closest to:

A.6.28%. B.8.8% C.5%. D.7.54%