A company issues a ten-year bond at par with a coupon rate of 7% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 8%. What is the new price of the bond? O A. $942 O B. $1,130 OC. $1,318 OD. $1,000 JRN Enterprises just announced that it plans to cut its next-year dividend, Dy, from $2.50 to $1.30 per share and use the extra funds to expand its operations. Prior to this announcement, JRN's dividends were expected to grow at 6% per year and JRN's stock was trading at $25.00 per share. With the new expansion, JRN's dividends are expected to grow at 12% per year indefinitely. Assuming that JRN's risk is unchanged by the expansion, the value of a share of JRN after the announcement is closest to: O A. $13.00 B. $32.50 O c. $62.50 OD. $25.00