contro option lon 13. What is the yield to maturity for a Pep Boys zero coupon bond that matures in 14 years if the bond is selling for $530.00? a. 5.84% b. 4.64% c. 4.28% d. 5.49% What is the value of a share of stock of HOV Ine, to an investor who requires a 12 percent rate of return if HOV's current dividend is $1.20? Assume carnings and dividends are expected to grow at a compound annual rate of 7 percent. a. $24.00 b. $18.34 c. $25.68 d. nonc of the above 14. Baywa has an outstanding bond that has a coupon rate of 8.3%. What is the market price of this bond if it pays interest semi-annually, has 15 years to maturity, and the current required rate of return is 9% on bonds of similar quality? a. $943 b. $1.059 c. $954 d. $1,000 15, 16. The constant growth dividend valuation model does not hold when a. ke is greater than g b. dividends are growing faster than 4 percent c. g is greater than ke d. the current dividend is known What would a GMA 6% coupon bond maturing in 14 years sell for if the current yield is 6.9% and the yield-to-maturity is 7.48%? a. $950.20 b. $920.02 c. S1,051.54 i. $872.90 17. 8. What is the value of an Orion bond that has a 10 percent coupon, pays inticrest semiannually, and has 10 years to maturity, if the required rate of return is 12 percent? a. $1,200 b. $885.50 c. $895.27 d. none of the above Page 5 of 13