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27. In February 2016, the US Treasury issued bonds with a 4.75% coupon, scheduled to mature in 2041. Interest was to be paid semi-annually and

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27. In February 2016, the US Treasury issued bonds with a 4.75% coupon, scheduled to mature in 2041. Interest was to be paid semi-annually and the YTM was 2.7%, what would have been the price of the bonds? A. $1,000 B. $518.26 . $1,381.20 D. $1,782.50 28, A 10-Year US Treasury bond with a face value of $1,000 pays a coupon of 5.5%. The reported YTM is 5.2%, what is the price of the bond? A. $1,023.16 B. $1,341.22 C. $1,000.00 D. $982.70 Chapter 4 (The value of common stocks) 29. The logic of discounted cash flow suggests that the value of a share of stock is equal to the expected future dividends per share. A. True B. False 30. Most public companies pay dividends to their shareholders. One of the measurements that investors pay very close attention to is the dividend yield. This number is determined as follows: Earnings per share divided by the price of the stock Dividends divided by the book value of the company Dividends divided by beta Dividend per share divided by price of a share of stock A. B. C. D. 31. Sales of shares of stock to raise new capital, often referred to as an initial public offering (IPO,) are said to occur in the primary market. The day to day exchange of shares in the public market is said to occur in the secondary market A. True B. False

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