1. Ajax Corporation has a bond with a coupon rate of 11.5%, maturing in 15 years at a value of $1,000. The bond makes annual interest payments and has a current market price of $920. What is the yield-to-maturity for the Ajax Corporation bond?
A. 12.72% B. 12.50% C. 11.83% D. 11.50%
2. Maxwell Electronics earned $13 million last year and maintains a 30% dividend payout ratio. The company has 2 million shares of common stock outstanding and a P/E ratio of 12. What is the dividend yield for Maxwell Electronics?
A. 1.50% B. 2.50% C. 3.50% D. 4.50%