A bond's value in the market equals the:

discounted sum of all interest and principal payments, where the discount rate is

equal to the yield to maturity.

bond's face value

sum of interest payments

sum of all interest and principal payments

Kate owns a stock with a market price of $$31$ per share. This stock pays a constant

annual dividend of $$0\mathrm{.}60$ per share. If the price of the stock suddenly declines to $$26$

a share, you would expect the:

I. dividend yield to increase.

II$.$ dividend yield to decrease.

III. capital gains yield to increase.

IV$.$ capital gains yield to decrease.

III only

I only

II and IV only

I and III only

II only