QUESTION 29

1. A 7% bond matures in 12 years. If you require a yield of 8%, what is the bond worth?

$855

$1,098

$924

$1,009

none of these

QUESTION 31

1. A common stock just paid a $4.00 dividend, expected to grow at 3%. If an investor pays $42 for the stock, what is the implied required return?

   		9.95%
   		11.08%
   		10.37%
   		12.81%
   		none of these