1. Broke Benjamin Co. has a bond outstanding that makes semiannual payments with a coupon rate of 5.8 percent. The bond sells for $965.18 and matures in 22 years. The par value is $1,000. What is the YTM of the bond?
3.04%
5.78%
4.57%
6.09%
5.48%
2. Countess Corp. is expected to pay an annual dividend of $4.45 on its common stock in one year. The current stock price is $72.55 per share. The company announced that it will increase its dividend by 3.60 percent annually. What is the company's cost of equity?
10.32%
9.46%
9.19%
9.95%
9.73%