1. A $1000 par value bonds pays an 8% APR coupon semiannually. If the bond has 10 years to maturity and a YTM of 9%, what is its current yield?

A. 4.3%

B. 4 9%

C. 6.5%

D. 8.6%

E. 9.2%

2. A company just became public and anticipates that they will begin paying a $5 preferred dividend 10 years from now and it will be constant forever. If the required rate is 10%, what is the value of this stock today?

A. $17.56

B. $18.57

C. $19.28

D. $20.27

E. $21.20

3. What is the yield to maturity of a $1000 par value bond that pays an $75 annual coupon and has 6 years to maturity if its current price is $1080? (There’s rounding so pick the closest)

A. 5.5%

B. 5.7%

C. 5.9%

D.6.1%

E. 6.3%

4. A $1000 par value bonds pays an 8% APR coupon semiannually. If the bond has 10 years to maturity and a YTM of 10%, what is its after-tax current yield for an investor paying 25% taxes?

A. 5.7%

B. 5 9%

C. 6.5%

D. 6.9%

E. 7.2%