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Sara has one share of stock and one bond. The total value of the two securities is $ 1 , 1 2 3 . 2

Sara has one share of stock and one bond. The total value of the two securities is $1,123.21. The stock pays annual dividends. The next dividend is expected to be $14.95 and paid in one year. In two years, the dividend is expected to be $13.42 and the stock is expected to be priced at $299.76. The stock has an expected return of 13.82 percent per year. The bond has a coupon rate of 6.20 percent and a face value of $1,000; pays semi-annual coupons with the next coupon expected in 6 months; and matures in 17.5 years. What is the YTM of the bond?
7.68%(plus or minus 4bps)
3.79%(plus or minus 4bps)
7.57%(plus or minus 4 bps)
8.35%(plus or minus 4bps)
the answer cannot be obtained based on the given information
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