Which of the following statements is CORRECT? If a bond sells at premium (above par), then its yield to maturity is less than its coupon rate If a bond sells at par, then its yield to maturity is more than its coupon rate If a bond sells for less than par, then its yield to maturity is less than its coupon rate. None of the above Lowell Industries expects to pay a $5.00 per share dividend on its common stock at the end of the year (D1 = $5.00). The dividend is expected to grow 25 percent a year until t = 4, after which time the dividend is expected to grow at a constant rate of 6 percent a year. The stock's required rate of return is 22.5%. What is the company's current stock price? $44.69 $40.48 $56.47 $62.2 If the yield to maturity decreased 2 percentage point, which of the following bonds would have the smallest percentage change in value? A 1-year bond with an 8 percent coupon. A 1-year zero-coupon bond. A 10-year zero-coupon bond. A 10-year bond with a 10 percent coupon