Suppose that a small, rural city in the countryside of North…

Suppose that a small, rural city in the countryside of North Dakota plans to issue $150,000 worth of 10-year bonds. Which one of the following components of the bond’s yield will be affected by the fact that no active secondary market is expected for these bonds?

Which of the following statements is/are correct? I. The quo…

Which of the following statements is/are correct? I. The quoted bond price (clean price) excludes accrued interest.II. The invoice price (dirty price) is the price actually paid and includes accrued interest.III. Accrued interest is the interest earned since the last coupon payment and is paid by the buyer to the seller.IV. A bond indenture typically includes provisions such as total amount issued, call options, sinking fund rules, and protective covenants.

This morning, you purchased a stock that will pay an annual…

This morning, you purchased a stock that will pay an annual dividend of $2.20 per share next year. You require a 15 percent rate of return and the dividend increases at 3.5 percent annually. What will your capital gain be in dollars on this stock if you sell it three years from now?