1) Careers Unlimited issued a bond, with a $1000 par value, 10 years ago that has 8 years remaining to maturity and an annual coupon rate of 12 percent. The interest payments are made every six months. If the current market price is $1230, what is the yield to maturity?
A. 4%
B. 5%
C. 8%
D. 10%
E. 12%
2) Given the following partial stock quote, what was the closing price on the previous trading day if the firm's earnings per share are $1.85?
Stock(Div) Div yld% close price Net chg
Alpha Ind. 3.2% $16.93 -.16
A. $16.71
B. $16.77
C. $16.89
D. $17.09
E. $17.40
3) Which one of the following represents the capital gains yield as used in the Gordon Growth or dividend growth model?
A. DI
B. DI/P0
C. P0
D. g
E. g/PO