1.A $1,000 face value 7-year bond with a 5% coupon rate has a price of $1,053.49. The YTM is:

a.5%b.greater than 5%c.less than 5%d. cannot be determined

10.What is the yield to maturity of a 8-year Bowie Corporation (BC) bond that pays a coupon rate of 20% per year, has a $1,000 par value, and is currently priced at $1,689? Round your answer to the nearest whole percent and assume annual coupon payments on the BC bond.

a. 10%b. 25%c. 8%d. 12%

14.Calculate the value of a 3-year bond that has a coupon rate of 8%, has a face value of $1,000, and includes an extra "bonus" payment at t=2 equal to $121. Use a required rate of return of 8% in your calculation. (The "bonus" payment occurs in addition to the coupon payment at t=2.)

a. $1,104b. $924c. $1,000d. $1,121

16.Braindead Brewing's common stock is expected to pay a dividend of $3.00/share each year for the next 12 years. The dividend at t=13 is expected to be $3.50/share and then dividends are assumed to grow at a constant rate of 2% thereafter. Using an 9% required rate of return, calculate the value of a share of this company's stock.

a. $71.48b. $39.26c. $21.48d. $50.00