Which of the letter choices are correct?

A zero coupon bond with a face value of $1,000 is issued with an initial price of $463.34. The bond matures in 25 years. What is the implicit interest, in dollars, for the first year of the bond's life?

Select one:

a. $9.08

b. $12.56

c. $14.48

d. $21.47

e. $31.25

High Noon Sun, Inc. has a 5%, semiannual coupon bond with a current market price of $988.52. The bond has a par value of $1,000 and a yield to maturity of 5.29%. How many years is it until this bond matures?

Select one:

a. 4.0

b. 4.5

c. 6.5

d. 8.0

e. 9.0

The current yield on Alpha's common stock is 4.8%. The company just paid a $2.10 dividend. The rumor is that the dividend will be $2.205 next year. The dividend growth rate is expected to remain constant at the current level. What is the required rate of return on Alpha's stock?

Select one:

a. 10.04%

b. 16.07%

c. 21.88%

d. 43.75%

e. 45.94%