Assume that you wish to purchase a 20-year bond that has a maturity value of $1,000 and makes semi-annual interest payments of $40. If you require a 10% per annum nominal yield to maturity (5% effective semiannual yield) on this investment, what is the maximum price you should be willing to pay for the bond? Oa. $489 Ob $761 Oc. . $572 O d. $902 O e. $828 Which of the following statement(s) is/are correct? 1. A stock's capital gain yield can never be equal to the dividend growth rate. II. A stock's dividend yield is equal to the realized return less the capital gain yield. III. The capital gains yield on a stock equals the stock price today divided by the stock price in one period Oa. Only III is correct O b. Only I is correct Both I and II are correct C O d. Only II is correct Oe. Both II and III are correct