Q #1

(Expected rate of retum) Assume you own a bond with a market value of $1, 100 that matures in 14 years. The par value of the bond is $1,000. Interest payments of $35 are paid semiannually. What is your expected rate of return on the bond? Your expected rate of return on the bond is 9%. (Round to two decimal places.)(Common stockholder expected refum) Ziercher executives anticipate a growth rate of 9 percent for the company's common stock. The stock is currently selling for $45.68 per share and pays an end-of-year dividend of $1.92. What is your expected rate of return if you purchase the stock for its current market price of $45.68? Your expected rate of return is |9%. (Round to two decimal places.)