QUESTION 5 A loan has a stated interest rate of 2.7% compounded quarterly. What is the EAR for this loan? QUESTION 6 XYZ Company's common stock is expected to pay a $2 dividend in the coming year. If investors require a 7% return and the growth rate in dividends is expected to be 2%, what will the market price of the stock be? ho QUESTION 7 Over the past year, inflation has been 3%. At the beginning of this year, you invested in a security that has returned a nominal rate of 6%. How much has your purchasing power changed? QUESTION 8 A bond is currently selling for $890 and has 8 years left to maturity. The stated coupon rate is 5% and coupon payments occur semiannually. If you purchase the bond today, what YTM will you earn