24. The market price of a semi-annual pay bond is $957.62. It has 8.00 years to maturity and a

coupon rate of 6.00%. Par value is $1,000. What is the yield to maturity?

a.

6.00%

b.

6.69%

C.

3.35%

d.

3.00%

e

6.30%

25. Assume a par value of $1,000. A firm plans to issue a 11-year, annual pay bond that has a price

of $1,058.29. If the yield to maturity for the bond is 6.50%, what will the coupon rate of the

bond be?

a.

7.50%

b.

6.85%

C.

5.00%

d

7.25%

e

8.00%

26. A stock just paid a dividend of $4.51. The dividend is expected to grow at 3.01% for three

years and then grow at 4.00% thereafter. How much is the dividend in year 4?

a.

$4.8995

b. $5.1268

C

$5.4678

d. $5.7219

e.

$6.0124