1. Greenbrier Industrial Products bonds have a coupon of 7.60 percent and pay interest annually. The face value is $1,000 and the current market price is $1,062.50 per bond. The bonds mature in 16 years. What is the yield to maturity?

2. Boynton Manufacturers made two announcements today regarding its common shares. First, the company announced that the next annual dividend will be $1.75 per share. Second, all subsequent dividends will decrease by 1.5 percent per year. What is the maximum amount you must pay today to buy a share of these stocks if you need a 14 percent rate of return?

3. Last year, you bought 500 shares of Analog Devices, Inc. for $11.16 per share. He has received a total of $120 in dividends and $7,190 from the sale of the shares. What is the capital gains yield on these stocks?

Answer rating: 100% (QA)

1 To calculate the yield to maturity YTM of the Greenbrier Industrial Products bonds we need to use ... View the full answer