QUESTION 7

A 10-year bond pays an annual coupon, its YTM is 8%, and it currently trades at a premium. Which of the following statements is CORRECT?

		The bonds coupon rate is less than 8%
		The bonds coupon rate is more than 8%
		The bonds coupon rate is equal to 8%
		The bonds current yield is less than 8%.
		The bonds current yield is equal to 8%

QUESTION 10

If a stock's dividend is expected to grow at a constant rate of 6% a year, which of the following statements is CORRECT?

		The stock's dividend yield is 6%.
		The expected return on the stock is 6% a year.
		The stock's required return must be equal to or less than 6%.
		The price of the stock is expected to decline in the future.
		The stock's price one year from now is expected to be 6% above the current price.