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A . A stock quote indicates a stock price of $103 and a dividend yield of 4%. Th

ID: 2619325 • Letter: A

Question

A. A stock quote indicates a stock price of $103 and a dividend yield of 4%. The latest quarterly dividend received by stock investors must have been ______ per share.

B.Money Market Yields You buy a $5,000 par 90 day T-bill for $4,950 . This bill's bond equivalent yield would be

C.You buy a TIPS at issue at par for $1,000. The bond has a 4.6% coupon. Inflation turns out to be 3.6%, 4.6%, and 5.6% over the next 3 years. The total annual coupon income you will receive in year 3 is

A. A stock quote indicates a stock price of $103 and a dividend yield of 4%. The latest quarterly dividend received by stock investors must have been ______ per share.

B.Money Market Yields You buy a $5,000 par 90 day T-bill for $4,950 . This bill's bond equivalent yield would be

C.You buy a TIPS at issue at par for $1,000. The bond has a 4.6% coupon. Inflation turns out to be 3.6%, 4.6%, and 5.6% over the next 3 years. The total annual coupon income you will receive in year 3 is

Explanation / Answer

a)

Dividend yield = Annual dividend/Share price

4% = Annual dividend/$103

Annual dividend = $4.12

Latest quarterly dividend is $1.03