ECON 5000 Midterm: ECON 5000 ECU FinEcon fe summer 2007 post
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There are 45 questions on this exam and the questions are weighted equally. Make sure to mark all of your answers on your blue bubble sheet: assume the yield curve is at and the appropriate discount rate is 6%. and a yield of 4% per year. What is its yield to maturity? (a) 51. 212% (b) 46. 212% (c) 41. 212% (d) 36. 212% (e) 31. 212% Assume further that today the yield curve is at at a rate of 1% per year. What rate of return did you earn on your initial investment? (a) 22. 692% (b) 23. 692% (c) 24. 692% (d) 25. 692% (e) 26. 692: the xyz corporation is expected to pay a cash dividend of . 50 per share next year. It has consistently increased its cash divi- dends in the past by 10% per year, and you expect it to continue to do so. You estimate that the market capitalization rate for this stock is 12% per year.
