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    Dividend Yields, Capital Gains, Bonds and Coupon Rates

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    9. Krell Industries has a share price of $22.00 today. If Krell is expected to pay a dividend of $0.88 this year, and its stock price is expected to grow to $23.54 at the end of the year, what is Krell's dividend yield?
    3.00%
    4.00%
    7.00%
    10.00%
    11.00%

    10.Krell Industries has a share price of $22.00 today. If Krell is expected to pay a dividend of $0.88 this year, and its stock price is expected to grow to $23.54 at the end of the year, what is Krell's capital gain rate?
    3.00%
    4.00%
    7.00%
    10.00%
    11.00%

    11. Krell Industries has a share price of $22.00 today. If Krell is expected to pay a dividend of $0.88 this year, and its stock price is expected to grow to $23.54 at the end of the year, what is Krell's total expected return?
    3%
    4%
    7%
    10%
    11%
    15. You intend to purchase a 10-year, $1,000 face value bond that pays interest of $60 every 6 months. If your simple annual required rate of return is 10 percent with semiannual compounding, how much should you be willing to pay for this bond?
    $1,122.87
    $1,003.42
    $875.38
    $950.75
    $1,124.63

    16. You have just purchased a 10-year, $1,000 par value bond. The coupon rate on this bond is 8 percent annually, with interest being paid each 6 months. If you expect to earn a 10 percent simple rate of return on this bond, how much did you pay for it?
    $812.15
    $1,003.42
    $875.38
    $950.75
    $1,124.63

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    https://brainmass.com/statistics/central-tendency/dividend-yields-capital-gains-bonds-and-coupon-rates-248966

    Solution Summary

    This solution explains how to calculate dividend yield, capital gain rate, total expected return, and bond prices.

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