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yuwu. I + PULL Interest rates on 3-year Treasury securities and 5-year Treasury securities are currently 4.5% and 5.3% respectively. If the pure expectations theory

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yuwu. I + PULL Interest rates on 3-year Treasury securities and 5-year Treasury securities are currently 4.5% and 5.3% respectively. If the pure expectations theory is correct, what does the market believe that 2-year Treasury securities will yield 3 years from now? A) 6.51% B) 5.60% C) 4.89% D) 4.55% Anderson Inc.'s current dividend is $2.40 per share (i.e., Do = $2.40). The dividend is expected to grow at a rate of 6 percent per year. The risk-free rate is 5 percent and the return on the market is 9 percent. If the company's beta is 1.3, what is the price of the stock today? A) $72.14 B) $57.14 C) $40.00 D) $60.57 Question 8 (1 point) For a 10-year regular bond with a par value of $1,000, which of the following statements is most correct if the bond coupon interest rate is less than the required rate of return on the bond? OA) It can be any of the following depending on the required rate of return. B) The price of the bond is more than $1,000. C) The price of the bond is exactly $1,000. D) The price of the bond is less than $1.000

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