Suppose a mutual fund that invests in bonds purchased a bond when its yield to maturity is higher than the coupon rate. The investor should expect the bond's price to: 0000 increase over time, reaching par value at maturity. be less than the face value at maturity exceed the face value at maturity. decline over time, reaching par value at maturity. QUESTION 3 What would be the price of a stock that pays an annual fixed dividend of $1.3 for ten years, and then the dividend payment increases by 1% every year, and the required rate of return is 5% annually? QUESTION 4 The nommal rate of return is % earned by an investor in a bond that was purchased for $974, has an annual coupon of 7%, and was sold at the end of the year for $1042? Assume the face value of the bond is $1,000. 1 points Save Answer 1 points SaveAnswer