QUESTION 23

Winston Enterprises has a 15-year bond issue outstanding that pays a 9% coupon. The bond is currently priced at $894.60 and has a par value of $1,000. Interest is paid semiannually. What is the yield to maturity?

		8.67%
		10.13%
		10.16%
		10.40%
		10.45% PROBLEM 2

QUESTION 24

Martha's Vineyard recently paid a $3.60 annual dividend on its common stock. This dividend increases at an average rate of 3.5% per year. The stock is currently selling for $62.10 a share. What is the market rate of return?

		2.5%
		3.5%
		5.5%
		6.0%