Discuss a capital gains-bonds and coupon rates


Complete the following mcq:

Q1. Krell Industries has a share price of $22.00 today. If Krell is expected to pay a dividend of $0.88 this year, and its stock price is expected to grow to $23.54 at the end of the year, what is Krell's dividend yield?

3.00%

4.00%

7.00%

10.00%

11.00%

Q2.Krell Industries has a share price of $22.00 today. If Krell is expected to pay a dividend of $0.88 this year, and its stock price is expected to grow to $23.54 at the end of the year, what is Krell's capital gain rate?

3.00%

4.00%

7.00%

10.00%

11.00%

Q3. Krell Industries has a share price of $22.00 today. If Krell is expected to pay a dividend of $0.88 this year, and its stock price is expected to grow to $23.54 at the end of the year, what is Krell's total expected return?

3%

4%

7%

10%

11%

Q4. You intend to purchase a 10-year, $1,000 face value bond that pays interest of $60 every 6 months. If your simple annual required rate of return is 10 percent with semiannual compounding, how much should you be willing to pay for this bond?

$1,122.87

$1,003.42

$875.38

$950.75

$1,124.63

Q5. You have just purchased a 10-year, $1,000 par value bond. The coupon rate on this bond is 8 percent annually, with interest being paid each 6 months. If you expect to earn a 10 percent simple rate of return on this bond, how much did you pay for it?

$812.15

$1,003.42

$875.38

$950.75

$1,124.63

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Microeconomics: Discuss a capital gains-bonds and coupon rates
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