How much should you be prepared to pay for a 10-year bond with a 6% coupon and current discount rate is 7.5%?

A) $411.84

B) $897.04

C) $985.00

D) $1,000.00

What dividend yield would be reported in the financial press for a stock that currently pays a $1 dividend per quarter and the most recent stock price was $40?

A) 2.5%

B) 4.0%

C) 10.0%

D) 15.0%