1. A 12-year bond has a yield of 8% and a duration of 10.014 years. If the market yield changes by -25 basis points, what is the percentage change in the bond's price?

None of the options are correct

-2.1873%

2.3181%

1.8871%

1. The market consensus is that Analog Electronic Corporation has an ROE = 7% and a beta of 1. It plans to maintain indefinitely its traditional plowback ratio of 2/3. This year's earnings were $5 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 8% and T-bills currently offer a 2% return.

None of the options are correct

$52.3333

$41.2877

$61.5252