Suppose a 10-year, 5% semiannual coupon bond is selling for $1100. Since the bonds issue, it is apparent that:

Select one:

a. The borrower has defaulted on a covenant contained in the indenture

b. The borrower has paid all expected dividends to common stockholders

c. The growth rate of the company has been 10%.

d. None of the above can be determined from the information given.

Suppose a 10-year, 5% semiannual coupon bond is selling for $1100. The bonds Yield to Maturity is:

Select one:

a. 1.89%

b. 3.79%

c. 1.90%

d. 3.78%