4. You bought a callable bond at the face value two years ago. The bond has a four- year maturity, a 10 percent annual coupon, a $1,000 face value, and a $1,021 call price. Suppose the bond is called immediately after you have received the second coupon payment. What is the bond's yield to call? A) 10% B) 11% C) 12% D) 14% 5. A corporate bond matures in one year. The bond promises a $50 coupon and principal of $1,000 at maturity. Suppose the bond has a 10 percent probability of default and payment under default is $400. If an investor buys the bond for $907.14, calculate the promised yield on the bond. A) 5 percent B) 6.6 percent C) 8.58 percent D) 15.75 percent 6. A company is 100 percent financed by equity capital and has two million shares outstanding. It is expected to earn a constant $20 million per year on its assets and will pay out all future earnings as dividends. If the cost of equity capital is 10%, what is the value of each share of the company's stock? A) $50 B) $100 C) $150 D) $200