1.If a bond's coupon rate is less than its yield to maturity, the the bond will sell __________. A.at a price equal to its face value B.at a price less than its face value C.at a price equal to the number of payments remaining D.at a price greater than its face value

2. Mears Corporation just paid a dividend of $4.45. The company forecasts a constant growth rate in dividends of 8 percent. If the appropriate discount rate is 14 percent, what is the current price of this stock (rounded to the nearest dollar)?

$40
		$60
		$80
		$100

3. If the supply of loanable funds decreases then all else equal __________.

interest rates will increase, decrease, or remain the same

interest rates will decrease

interest rates will increase

interest rates will remain unchanged

4. The yield to maturity of a bond is the discount rate that makes the present value of the coupon and principal payments __________.

		equal to zero
		greater than the price of the bond
		equal to the price of the bond
		less than the price of the bond