Bonds are currently paying an interest rate

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You are in the market for a stock that is currently selling at $20. You intend to sell the stock immediately after you receive a dividend payment of 20 cents per share. Moreover you believe that you can sell the stock at $21 per share. If bonds are currently paying an interest rate of 7% should you buy this stocks? Fully demonstrate how you reach this conclusion.

Reference no: EM131094419

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