B) 2.85 percent C) 4.46 percent D) 2.25 percent E) 4.50 percent on bond for $214.55 with a face value of $1.000 maturing 21. Answer: () Suppose you purchase a zero coupon bond for $214.55 with a face value twenty years. If the yield to maturity (YTM) on the bond is 8.00%, what will the the bond be at the end of five years from now? A) $315.24 B) $387.52 C) $410.91 D) $1,000 E) none of these 22. Answer: ) The dividend yield on a stock will increase if the: A) dividend growth rate decreases. B) stock price decreases. C) capital gains rate decreases. D) stock price increases. E) tax rate on dividends increases. 23. Answer: ( ) Gator Tires pays a constant annual dividend of $1.21 per share. How much are you willing to pay for one share if you require a rate of return of 9.3 percent? A) $1.39 B) $6.50 C) $13.01 D) $13.90 E) $14.72 24. Answer: () Opulance Corp. common stock is selling for $44.25 a share and has a dividend yield of 1.9 percent. What is the dividend amount? A) $0.42 B) $0.84 C) $4.2 D) $6.2 E) $8.4