Sadik Inc.'s bonds currently sell for $1,340 and have a par value of $1,000. They pay a $95 annual coupon and have a 10-year maturity, but they can be called in 6 years at $1,050. What is their yield to call (YTC)?

a. 5.40%

b. 3.81%

c. 4.13%

d. 7.09%

e. 5.08%

If D₁ = $1.50, g (which is constant) = 5.6%, and P₀ = $86, then what is the stock's expected capital gains yield for the coming year?

a. 1.84%

b. 7.34%

c. 3.86%

d. 1.74%

e. 5.60%