What is the YTM of a 10 year, 8% semi-annual coupon bond with a price of $1220? a. 5.13% O b. 5.16% O c. 4.58% Od 2.58% A stock with a price of $300 is expected to pay a $18 dividend next year. This dividend is expected to increase by 4% indefinitely. What is the expected capital gains yield of the stock? a. 6% Ob 10% O c. 4% d. 2% What is the maturity of a 7% annual coupon bond with a quoted price of 10 and a YTM of 6.42%? O a. 16 years O b. 7 years O c. 10 years o d. 13 years If the market risk premium is 7%, the risk-free rate is 2% and the beta of a stock is 0.5, what is the expected return of the stock? O a 2.5% O b. 3.5% O c. 4.5% O d. 5.5% Time left 1:57:27 If inflation is 1% and the nominal rate of interest is 4%, approximately what is the real rate of interest? O a. 4% Ob 1% O c. 5% O d. 3% Jenna invested $1200. She received three payments of $150 and then sold her stake in the investment for $1250. What was her rate of return? O a. 170% O b. 25% O c. 42% O d. 70% There is a 25% chance a stock earns 10%, a 50% chance the stock has a 2% return, and a 25% chance the stock loses 2%. What is the expected return of the stock? O a. 3% O b.5% O c. 2% O d. 4% The expected market return is 8% and the risk-free rate is 3%. If the expected return of stock XYZ is 10%, what is its beta? O a. 1.4 Ob 1.25 O c. 2 O d. 1.75 What is the expected change in price of a 6% preferred stock if the required rate of return drops instantly from 8% to 6%? O a. $20 decrease O b. $25 decrease O c. $25 increase O d. $20 increase Under which form of the Efficient Market Hypothesis would one argue that insider trading is a waste of time? O a strong form O b. weak form O c. semi-strong form d. super strong form