Question: Question 44 (6 points) Varma company will issue you a bond with the following attributes: face value = $1,000; annual coupon rate=12%; maturity= 15 yrs.;

 Question 44 (6 points) Varma company will issue you a bond
with the following attributes: face value = $1,000; annual coupon rate=12%; maturity=
15 yrs.; coupon payment frequency = semi-annual; end of year payments; issue

Question 44 (6 points) Varma company will issue you a bond with the following attributes: face value = $1,000; annual coupon rate=12%; maturity= 15 yrs.; coupon payment frequency = semi-annual; end of year payments; issue price = $895. What is the yield to maturity of this bond on an annual basis? 1) Between 0 percent and 8.00 percent 2) Between 8.01 percent and 10.00 percent 3) Between 10.01 percent and 12.00 percent 4) Greater than 12.00 percent Question 46 (6 points) Next year's dividends per share, i.e., D1, are expected to come in at $3.00 for the entire year. Your required rate of return on this investment is 7.00% and your projected constant growth rate is 4.00%. Based on this information, and using the constant growth dividend growth model what is the estimated value of one share of this investment? 1) Between $50.00 and $85.00 2) Between $85.01 and $95.00 3) Between $95.01 and $115.00 4) Greater than $115.00 Question 49 (6 points) Saved The U.S. Treasury just issued you a 3 Month Treasury Bill with a $1,000 Face Value for $986.00. What is the annual interest rate you will receive on your investment? 1) Between 0 percent and 2.00 percent 2) Between 2.01 percent and 4.00 percent 3) Between 4.01 percent and 6.00 percent 4) Greater than 6.00 percent

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