2. a. b. C. d If a bond with an 13.2% coupon rate on a $1,000 par value is currently selling for $840, the bondholder will receive in interest in each year. $57.50 $96.60 $132.00 $160.00 none of the above The price sensitivity of Ibond to a given change in interest rates is generally greater the longer the bond's remaining maturity. a. True b. False e. 3. 4. If a stock pays a dividend of $7.50 in the first year (D1), the current price is $155. and the sztowth rate is 9%, what is the required rate of return (r.)? a. 9.0% b. 13.84% c. 16.50% d. 21.07% Global Travel, Inc. just paid a dividend of $4.50 (1.e. Do = $4.50). How big will the dividend be in 7 years (1.e. Du) if the growth rate (g) over this period is 3.8%? $3.18 $5.84 $7.08 58.87 5. a. b. c. d. 6. a A coupon bond that pays interest annually has a par value of $1000, matures in 14 years, and has yield to maturity of 12%. The value of the bond today will be if the coupon rate is 10% $1,150.72 b. $620.92 $1,123.01 d. $867.44 e. $1,000.00 7. What is the approximate yield to maturity for a $1000 par value bond selling for $965 that matures in 16 years and pays 11 percent coupon interest annually? a. 13.85 percent b. 12.21 percent c. 11.49 percent d. 10.78 percent e. 9.13 percent