21. The bonds issued by Jensen & Son bear a 6% coupon, payable semiannually. The bond matures in 8 years and has a $1,000 face value. Currently, the bond sells at par. What is the yield to maturity? A. 5.87% B. 5.97% D. 6.09% C. 6.00% E. 6.17% 22. If its yield to maturity is less than its coupon rate, a bond will sell at a and increases in market interest rates will A. discount; decrease this discount. C. premium; decrease this premium. E. None of the above. B. discount; increase this discount. D. premium; increase this premium. 23. You own a bond that has a 7% coupon and matures in 12 years. You purchased this bond at par value when it was originally issued. If the current market rate for this type and quality of bond is 7.5%, then you would expect: A. the bond issuer to increase the amount of each interest payment on these bonds. B. the yield to maturity to remain constant due to the fixed coupon rate. C. to realize a capital loss if you sold the bond at the market price today. D. today's market price to exceed the face value of the bond E, the current yield today to be less than 7%. 24. A stock you are interested in paid a dividend of $1 last month. The anticipated growth rate in dividends and earnings is 25% for the next 2 years before settling down to a constant 5% gro The discount rate is 12%. Calculate the expected price of the stock. A. $15.38 C. $21.04 E. $26.14 B. $20.50 D. $22.27