1. Which of the following is NOT a primary market participant?
Ginnie Mae
Credit Unions
Commercial Banks
Mortgage Brokers
2. With _____ coupon rate, a bond’s price sensitivity tends to increase, ceteris paribus. With _____ maturity, a bond’s price sensitivity tends to increase, ceteris paribus.
lower; shorter
higher; longer
zero; no
lower; longer
higher; shorter
3. Tyler Industries recently paid the annual common stock dividend of $2.00. The dividend amount is projected to grow at the annual rate of 30 percent for the next 2 years. Starting in the third year, the growth rate is expected to stay constant at the annual rate of 5 percent for the foreseeable future. If the required rate of return is 15 percent, what is the value of this stock?
$39.56
$35.68
$31.65
$37.12
$33.74