8.2A bond with a coupon rate of 10.20% has a yield-to- maturity that today equals 8.90%. The $1,000 bond pays coupons every 6 months, 23 coupons remain, and a coupon was paid yesterday. Suppose you buy this bond and hold it so that you receive 7 coupons. You sell the bond upon receiving that last coupon. Suppose that when you sell the bond its yield-to-maturity has decreased by 250 basis points. What would have been your annual rate of return for the bond investment? a. 11.3% b. 12.4% c. 10.3% d. 13.7% c. 15.0% 9. Which statement about bond prices is most accurate? a. For a discount bond the coupon rate exceeds the yield to maturity b. With an interest rate decline the price rises more for short- term bonds than for long-term bonds c. With an interest rate increase the price falls more for long- term bonds than for short-term bonds .. When a bond is sold at an interest rate less than the initial yield to maturity then the actual rate of return is less than the promised yield e. Cand D are correct 10. You just purchased a $1,000 par value, 9-year, 7 percent annual coupon bond that pays interest on a semiannual basis. The bond sells for $920. What is the bonds nominal yield to maturity? 27.28% b. 8.28% c. 9.60% d. 8.67% 6.4.13% 11. Allegheny Publishing's stock is expected to pay a year-end dividend, D, of $4.00. The dividend is expected to grow at a constant rate of 8 percent per year, and the stock's required rate of return is 12 percent. Given this information, what is the expected price of the stock, eight years from now? . $200.00 b. $185.09 c. $171.38 d. S247.60 e. $136.86