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4. What is the yield to maturity of a corporate bond with 15 years to maturity, a coupon rate of 6% per year, a $1,000

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4. What is the yield to maturity of a corporate bond with 15 years to maturity, a coupon rate of 6% per year, a $1,000 par value,and a current market price of S 1,0807 Assume semi-annual coupon payments. a. 4.3% b. 4.8% c. 5.290 d. 5.5% 5. Gakuto Inc. just paid a dividend of $1.20 on its common stock at the end of last year. Div idends next year are expected to be $1.75. You believe you can sell the stock then for $12.50. If your required rate of return on this stock is i 196, how much are you willing to pay for the stock today? (Hint: are dividends growing constantly?) a. $14.05 b. $12.83 c. $12.50 d. $11.64 6. Which of the following features, or benefits, belong to a firm's common stockholders? a. limited liability b. ownership of the firm c. voting rights d. all of the above 7, Jaeger, Inc. bonds have a 7.67% coupon rate with semi-annual coupon payments. They have 11 years to maturity and a par value of $1,000. What is the current yield of the bond if the bond is selling at a market price of $1,198.24? a. 7.9%. b. 7.2%. c. 6.4%. d. 5.5%

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