1. Suppose that you have a bond that has a par value of $1,000 and a coupon interest rate of 9%. Its current price is $950 and it will mature in 7 years. What is the approximate yield to maturity? (use calculator)
2. You invest a lump sum of money today, earning 6%/year, compounded annually. How long will it take to double your money? Choose the closest answer.
3. Which of the following measures cash returns to stockholders given the cash investment?
A) Dividend payout ratio
B) Cumulative dividends in arrears
C) Dividend yield
D) Book value
E) All of the above