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XZYY.Inc. currently has an issue of bonds outstanding that will mature in 36 years. The bonds have a face value of $1.000 and a stated

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XZYY.Inc. currently has an issue of bonds outstanding that will mature in 36 years. The bonds have a face value of $1.000 and a stated annual coupon rate of 9% with quarterly coupon payments. The bond is currently selling for $869. The bonds may be called in 6 years for 113% of par value. What is the quoted annual yield-to-call for these bonds assuming the company calls the bonds as soon as possible? 10.40% 0 25.11% 10.67% 2.60% 13,67% IM Question 8 10 pts You are considering buying common stock in Grow On Inc. You have projected that the next dividend the company will pay will equal $5.70 and that dividends will grow ata rate of 5.0% per year thereafted. If you would want an annual retum of 21.096 to invest in this stock. What is the most you should pay for the stock now? 528/50 16) 8

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