Assume your company issued a bond five years ago with a 8% coupon rate. If comparable bonds currently offer YTMs around 10%, then you expect that... your company's bond will sell at a discount price your company's bond will sell at a premium price your company's bond will sell at the same price as the comparable bonds current price you company's bond will sell at the same price as the selling price five years ago Question 7 (1 point) Bonds: which of the following is FALSE? The risk of a AAA bond is lower than the risk of a BBB bond Moody and S&P and bond rating agencies Bonds below BBB are called junk bonds AYTM of a AAA bond should be higher than the YTM of a BBB bond Question 8 (1 point) What is the rate of return if you purchase a stock today for $45 and sell it in five years for $53? Assume the stock pays an annual dividend of $2.3. At the end of year: 23 Purchase Price Dividend Selling Price 2.3 2.3 2.3 2. 2.3 9.00% 8.13% 7.87% 8.64% Question 9 (1 point) How much should the stock price be in five years from now if you purchase a stock today for $45, your required rate of return is 14%, and the stock pays $2.3 dividend annually? At the end of year: Purchase Price Dividend Selling Price 2.3 2.3 2.3 2.3 2.3 O $32.10 O $37.10 O $71.44 62.67