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coupon income c. If you buy the bond today and hold it to maturity, your return will be yield to b. The yield to maturty l maturity The relationship between price and yield is that the higher the price you pay for a bond, the higher the yield 10. Which one of the followving statements is correct regarding interest rates and bond values? When the interest rate rises, the present value of the payments to be received by the bondholder falls and bond prices fall. b. A decline in the interest rate decreases the present value of those payments and results in a higher price. c. Any change in interest rate has a greater impact on the price of long-term bonds than the price of short-term bonds d. A change in intcrest rates has only a modest impact on the present value of ong-term cash flows. 11.Which of the following is not a element of a good corporate governance? a. Legal requirements. b. Employee motivation. c. Boards of directors. d. Activist shareholders. stock paid a dividend of $4 at the end of last year. Dividends grow at a constant rate of 8% per year indefinitely. If investors 12. A share of common are expected to requo a rate ofreturn of 10% what is the a. $40 b. $50 С.$200 d. $216 current share price? 13. Which of dhe following staterments about the intrinsic s just the present value of the dividend payments anticipated value of the share is correct? by the investor in the stock market, the perfect price of the stock will equal to its intrinsic e. In coimpetitive market, the perfect price of the stock will intrinsic value. In competitive market, the perfect price intrinsic value. higher than its of the stock will lower than its d. 14. Which of the following e calculate the mumber of times the price being paid for not The PfE ratio is used to calculate the number erding the P/E 第3頁共10頁