1. What is the yield to maturity of a bond that pays 12% coupon rate with semi-annual coupon payments, has a par value of $1,000, matures in 9 years, and is currently selling for $897? a) 14.05% b) 11.90% c) 7.03% d) 12.97% 2. a company just paid a dividend of $1.25, and those dividends are expected to grow at a constant rate of 5% forever. If the required return of the investors is 11%, what is the stock price using the constant growth mode? a) $21.88 b) $16.41 c) $18.75 d) $12.36 The preferred stock of your company pays $1.5 quarterly dividends. If investors require 7.5% rate of return for these shares, what price should the preferred stock sell for? a) $80.00 b) $70.60 c) $63.16 d) $67.50 DEC