Current yield and Capital Gains yield: 8. A corporate bond is selling at a price of 1031.6 and carries a 6.50 percent coupon. The bond pays interest semiannually and the par value is $1,000. What is the current yield on one of these bonds? Stocks Valuation: 9. The common stock of Textile Mills pays an annual dividend of $1.75 a share. The company has promised to maintain a constant dividend. How much are you willing to pay for one share of this stock if you want to earn a 14 percent annual return? 10. Today, Miller Brothers Hardware paid an annual dividend of $1.15 per share. The company also announced that future dividends will be increasing by 2.8 percent annually. If you require a 10 percent rate of return, how much are you willing to pay to purchase one share of this stock today? 11. The common stock of Auto Deliveries sells for $28.16 a share. The stock is expected to pay $1.35 per share next year when the annual dividend is distributed. The firm has established a pattern of increasing its dividends by 3 percent annually and expects to continue doing so. What is the market rate of return on this stock? 12. Roy's Welding Supplies common stock sells for $38 a share and pays an annual dividend that increases by 3 percent annually. The market rate of return on this stock is 8.20 percent. What is the amount of the last dividend paid