11. Porsche N.A. is expected to pay a dividend of $5.7 in the upcoming year. Dividends are expected to grow at the rate of 3.7% per year. The risk-free rate of return is 4%, and the expected return on the market portfolio is 8.5%. Investors use the CAPM to compute the required rate of return on the stock and use the constant-growth DDM to determine the intrinsic value of the stock. The stock is trading in the market today at $111. Using the constant-growth DDM and the CAPM, the beta of the stock is 12. A coupon bond that pays interest of 4% semi-annually has a par value of $1,000, matures in 12 years, and is selling today at $872.25. The actual yield to maturity on this bond is