Suppose you buy a 8.25% percent annual coupon bond for $1,030. The bond has 20 years to maturity. The interest is paid once a year. Three years from now, the YTM has declined by 1.50% and you decide to sell the bond. What is the percentage rate of return (Holding Period Yield) on your investment? 5.5403% 12.3987% 14.8669% 8.2500% You manage a bond portfolio and believe that market interest rates are going lower over the next several months. To profit from your belief, you should today: 1. Reduce the average maturity of the portfolio by selling long-term bonds and buying short- term bonds. 11. Lengthen the average maturity of the portfolio by buying long-term bonds and selling short-term bonds. III. Reduce the average coupon rate by selling high-coupon bonds and buying low-coupon bonds. IV. Increase the average coupon rate by buying high-coupon bonds and selling low-coupon bonds. I only II & III 1&l! & IV Suppose that you have just purchased a share of stock for $32.50. The most recent dividend was $2.75 and dividends are expected to grow at a rate of 6% indefinitely. What is the required rate of return on the stock? 14.4615% O 8.4615% 14.9692% 8.9692%