MG-670 151 Student I D Name e dividends to be received over the next five years if the discount rnte is 15 percent? Round final answer to two decimal places) a. $4.85 b. $5.37 c. S5.50 d. S6.14 17. Mctasteel Limited Co. has a stable track record with sales that are not expected to grow in the next several years. Its last annual dividend was $5.75. If the required rate of return on similar investments is 18 percent, what is the current stock price? a. $103.50 b. $13.50 c. S39.30 d. S31.94 (Round the answer to two decimal places.) 18. You can buy a $1,000 par value bond for $800. The coupon rate is 10% (with annual payments), and there The price of are 10 years before the bond will mature and pay off its $1,000 par valuce the bond suggests that the expected return on bonds with this risk is lower than 10%. a. True b. Falsc 19. The yield to maturity of a bond is the discount rate that makes the present value of the oupon and principal payments equal to the price of the bond. a. True b. False D. If a bond's coupon rate is higher than the market rate of interest, then the bond wll sell: a. b. c. At a discount At a premium At par value In calculating the current price of a bond paying semiannual coupons, one needs to: a. Use half the number of years for the number of payments made b. Use double the number of years for the number of payments made c. Use the semiannual coupon d. Use the semiannual rate as the discount rate (interest rate) e. B, C, and D Which one of the following statements about zero coupon bonds is NOT true? a. Zero coupon bonds have no coupon pymts but promise a single payment at n b. Zero coupon bonds must sell for less than similar bonds that make periodic c c. d. pymts Zero coupon bonds make coupon payments but no principal payment at ma All of the above