Determine the current price (P₀) of a constant growth stock that has a D₁ of $2.15, a constant growth rate (g) of 5%, and a rate of return (r_S) of 12%.

$40 $50 $30 $20

A company has an annual coupon bond issue that has a coupon rate of 3%, a current price of $918.89, and 10 years of maturity. Determine the bonds YTM.

Cannot be determined without knowing its YTC. 4% 5% 3%

Other things being equal, which of the following types of bonds should have a lower yield to maturity?

All bonds should have the same yield to maturity.

A bond is a debenture.

A bond has no collateral.

A bond is secured by land.