12. True or False: If a bond has a call provision, the company who issues the bond MUST purchase the bonds at the call price after the stated call period. a. True b. False 13. A bond pays coupons semi-annually. If the bond will mature in 12 years, the coupon rate is 690, and the YTM is 790, what is the current price of the bond? a. $1,030.86 c. $919.71 b. $980.14 d. $943.06 14. If all else is equal (required return and expected growth rate of dividends in the future do not change) and a company increases its dividend by a higher amount than expected, the immediate result should be that the stock price will: a. rise b. fall c. stay the same 15. A compan y just paid a dividend of $2.60 on its stock. If the expected growth rate of future dividends is 2% and investors require a return of 6 % on their investment, what should the price be according to the Constant Dividend Growth Model? a. $66.30 c. $60.28 b. $71.45 d. $63.98