TIPLE CIIOICE Choose the one alternative that best compleies ihe siaiemeni or answere the tion DA10-year bond, with a par value equaling SI,000, pays 7% annually, Irsimilar bonds p are currently yielding 6% annually, what is the market value of bond? Use semi-annual analysis. 1927,500 B) S700.00 $1.074,70 the issuance price of the bond? D) S64 B)SI,000 A) S614 An issue of preferred stock is paying an annual dividend ofS1.50, The growth rate for the firm's common stock is 5%. What is the preferred stock price if the required rate of return is 7%? A) $21.43 B)$22.50 D) None of these options are correct 4)The value of a common stock is based on its A) past performance. B) current earnings. historic dividends. D) value of future benefits to the holder. 5) An issue of common stock is expected to pay a dividend of S5.15 at the end of the year. 5) Its growth rate is equal to 6%. If the required rate of return is 10%, what is its current price? A) $128.75 B) S96.00 C)$36.92 D) None of these options are correct 6) Which of the following regarding preferred stock is true? A) The price in the market remains at par. B) If the required rate ofreturn increases, the price increases, If the price the required rate decreased. D) If the required rate of increases, the price decreases. B) Historic yields A) Required real rate of return risk D) Business C) Risk free rate