1) Jumbuck Exploration has a current stock price of $2.20 and is expected to sell for $2.31 in one? year's time, immediately after it pays a dividend of $0.23. Which of the following is closest to Jumbuck? Exploration's equity cost of? capital?
A. 7.73?%
B. 9.28?%
C. 15.46?%
D. 19.33?%
2) Consider a? zero-coupon bond with a $100 face value and 10 years left until maturity. If the YTM of this bond is5.3?%, then the price of this bond is closest? to:
A. $83.53
B. $100.00
C. $71.60
D. $60.00
3) A company issues a? ten-year bond at par with a coupon rate of 6.6?% paid? semi-annually. The YTM at the beginning of the third year of the bond? (8 years left to? maturity) is 8.2?%. What is the new price of the? bond?
A. $907
B. $1,270
C. $1,089
D. $1,000