The real riktne tate is 305% ination is expected to be 3i0% this year, and pemium is zero. What is the equilibvrium rate of return on a 1 year Treasury maturity risk 6. bond? (a) 572% (b) 552% 8.19% semiannual cospor, and a par s 500%, based on semiannual compounding Whatis 7. k Corporation's bonds have a he going inderest rate 15-year maturity, a 725% ie of u the bond's price? (a) $1,45785 )$1,389.01 1,030.15 (e) $1,235.47 8. Assume that interest rates on 20-year Treasury and corporate bonds are as follows T-bond a -772% AAA-8.72%; A " 9.64%:BB-10 18% The differences in these rates were probably caused pn. 7.x marily by risk-free rate Default and liquidity rsk differences (d) Tax effects. (e) Inflation differences 9. Whited Inc's stock curmently sells for $35 25 per share The divdeud in proipected to in t constant rate of 5.25% per year. The required ramd rtum on th, stod, '' isiLn what is the stock's expected price 5 years froan25 (b) $40.06 (c) $52.81 (d) $45.53 10. Goodle Inc.'s stock has a required rate of return ot 11.30 and it sells fo $29.00 er share Goodle's dividend is expected to grow al a conotant rabe of 750% What was the lanit debed, Do? (a) $1.37 (b) $1.38 (c) $0.95 (d) $1 $12 aAch Version 4