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Question 1 A firm is expected to pay a $1 dividend next year and the expected share price of the fimm next year is $42.

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Question 1 A firm is expected to pay a $1 dividend next year and the expected share price of the fimm next year is $42. If investors require a 12% rate of return, what is the expected share price today? Not yet answered O a. $39.39 Marked out of 5.00 O b. $43 P Flag question O c. $37.50 O d. $38.39 Question 2 What is the YTM of a 10 year, 8% semi-annual coupon bond with a price of $1220? Not yet answered O a. 5.13% Marked out of 5.00 O b. 2.58% Flag question O c. 4.58% O d. 5.16% Question 3 For most bonds, if the bond's interest rate (yield rate) increases: Not yet answered O a. the coupon rate decreases Marked out of 5.00 O b. the coupon rate increases P Flag question O c. coupon payments stop O d. the coupon rate remains the same Question 4 Not yet answered You are given two choices: A: You receive $1,000.00 B. You flip a coin. If it lands heads, you receive $2,000.00, but if it lands tails, you get nothing. If you are risk neutral, which would you choose? Marked out of 5.00 Flag question . O b. cannot determine from the information given O c. A or B, it doesn't matter O d. A

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