Primary market participant

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1. Which of the following is NOT a primary market participant?

Ginnie Mae

Credit Unions

Commercial Banks

Mortgage Brokers

2. With _____ coupon rate, a bond’s price sensitivity tends to increase, ceteris paribus. With _____ maturity, a bond’s price sensitivity tends to increase, ceteris paribus.

lower; shorter

higher; longer

zero; no

lower; longer

higher; shorter

3. Tyler Industries recently paid the annual common stock dividend of $2.00. The dividend amount is projected to grow at the annual rate of 30 percent for the next 2 years. Starting in the third year, the growth rate is expected to stay constant at the annual rate of 5 percent for the foreseeable future. If the required rate of return is 15 percent, what is the value of this stock?

$39.56

$35.68

$31.65

$37.12

$33.74

Reference no: EM132062753

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