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Fin 3000-version 1 $1,000 par value bonds of Castles in the Sand, Inc pay $80 in annual coupons. The bonds are A the price of

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Fin 3000-version 1 $1,000 par value bonds of Castles in the Sand, Inc pay $80 in annual coupons. The bonds are A the price of the bond goes down B the price of the bond goes up C. tecopon rate changes to 12% D. the current yield changes to 12% E the information given is not sufficient to answer the question to the bond if market interest rates suddenly change to 12%? 18. what $1,000 face value, and a yield to maturity of 8%. The coupons are semiannual A $1,196 B $635 C.$830 D. $1,198 the market value of a bond that matures in twenty years, has a 10% coupon rate, E none of the above 19. Topstone Industries is expected to pay a dividend of $2 per share in one year. This dividend is expected to grow at a rate of 2% forever. The current market price for a share of Topstone is $10. What is the dividend yield on this stock? A20% B.18% C.2% D,22% E none of the above For a diversified portfollio with a large number of stocks: A none of the above B. the nonsystematic risk goes to zero. C the beta goes to zero. D. the return equais the risk-free rate. E the expected return goes to zero. Topstone Industries is expected to pay a dividend of $2 per share in one year. This dividend is expected to grow at a rate of 2% forever. The current market price for a share of Topstone is S10. What is the expected capital gains yield on this stock? A2% B.22% C.20% D. 18% E none of the above You borrow $1,000 from your bank. The interest rate is 1% per month. How much will you have to pay back to the bank in one year? A $1,125 $1,010 C $1,127 0 $1,120 E none of the above

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