Paul owns investment A and $1$ bond $B.$ The total value of his holdings is $$6,450\mathrm{.}43.$ Investment $A$ is expected to pay annual cash flows to Paul forever with the first annual cash flow expected in $1$ year from today. Investment A has an expected return of $11\mathrm{.}53$ percent. The first cash flow is expected to be $$510\mathrm{.}00$ in $1$ year and annual cash flows are expected to increase by $2\mathrm{.}04$ percent each year forever. Bond $B$ pays semi$-$annual coupons, matures in $10$ years, has a face value of $$1,000\mathrm{.}00,$ has a coupon rate of $12\mathrm{.}52$ percent, and pays its next coupon in $6$ months. What is the yield$-$to$-$maturity for bond $B?$

$5\mathrm{.}26\%($plus or minus $2$ bps$)$

$11\mathrm{.}23\%($plus or minus $2bps)$

$11\mathrm{.}53\%($plus or minus $2bps)$

$5\mathrm{.}97\%($plus or minus $2bps)$

none of the answers are within $2bps$ of the correct answer

QUESTION $2$

George owns investment A and $1$ bond B$.$ The total value of his holdings is $$6,601\mathrm{.}37.$ Investment A is expected to pay annual cash flows to George forever with the first annual cash flow expected in $1$ year from today. Investment A has an expected return of $11\mathrm{.}28$ percent. The first cash flow is expected to be $$512\mathrm{.}00$ in $1$ year and annual cash flows are expected to increase by $2\mathrm{.}32$ percent each year forever. Bond $B$ pays semi$-$annual coupons, matures in $9$ years, has a face value of $$1,000\mathrm{.}00,$ has a coupon rate of $12\mathrm{.}82$ percent, and pays its next coupon in $6$ months. What is the yield$-$to$-$maturity for bond $B?$

$15\mathrm{.}16\%($plus or minus $2bps)$

$14\mathrm{.}63\%($plus or minus $2bps)$

$8\mathrm{.}24\%($plus or minus $2bps)$

$8\mathrm{.}15\%($pl$$s or minus $2bps)$

none of the answers are within $2bps$ of the correct answer

QUESTION $3$

Juan owns investment A and $1$ bond B$.$ The total value of his holdings is $$3,100\mathrm{.}00.$ Bond B has a coupon rate of $19\mathrm{.}14$ percent, par value of $$1,150\mathrm{.}00,$ YTM of $9\mathrm{.}47$ percent, $12$ years until maturity, and semi$-$annual coupons with the next coupon due in $6$ months. Investment $A$ is expected to produce cash flows forever. The next cash flow is expected to be $$108\mathrm{.}00$ in $1$ year, and subsequent annual cash flows are expected to increase by g each year forever. The expected return for investment $A$ is $16\mathrm{.}99$ percent. What is $g,$ the annual growth rate for the annual cash flows paid by investment $A?$

$11\mathrm{.}43\%($plus or minus $2bps)$