A preferred stock pays a dividend of $1.00 every 6 months. What is the required return (annually) if the stock is currently trading at $20? 20% 5% 10% 16% 025% Question 14 (5 points) Saved The defines the relationship between risk and return. market risk premium. CAPM. volatility. theory of diversification. Peace Music issued bonds eight years ago that now have 17 years to maturity, face value of $1,000, YTM of 8%, and an annual coupon rate of 10%. The bonds make semiannual coupon payments. What is the current price of the bond? $1,184.11 $862.01 $1,297.47 $838.07 Treasury securities are issued by the federal government. low grade debt instruments. known for low liquidity. bonds that can only be held by American citizens. always discount bonds. Solar Technologies is a young company that is growing quickly. No dividends will be paid for the next 6 years. The company will pay a $5 dividend in year 7 and will increase the dividend 4% per year, thereafter. If the return on the stock is 12%, what is the current share price (at time 0)? $31.66 $28.75 $98.22 $39.71 $62.50