a. A coupon bond pays annual interest, has a par value of $1,000, matures in 4 years, has a coupon rate of 8.25%, and has a yield to maturity of 8.64%. The current yield on this bond is ___________.
b. You purchased an annual interest coupon bond one year ago that had 9 years remaining to maturity at that time. The coupon interest rate was 10% and the par value was $1,000. At the time you purchased the bond, the yield to maturity was 8%. If you sold the bond after receiving the first interest payment and the yield to maturity continued to be 8%, your annual total rate of return on holding the bond for that year would have been _________.
c. Which of the following ratios gives information on the amount of profits reinvested in the firm over the years? A) Sales/total assets B) Debt/total assets C) Debt/equity D) Retained earnings/total assets E) None of these is correct.