Calculate the price of zero coupon bond

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Reference no: EM132010503

1. Weston Corporation just paid a dividend of $2.5 a share (i.e., D0 = $2.5). The dividend is expected to grow 7% a year for the next 3 years and then at 3% a year thereafter. What is the expected dividend per share for each of the next 5 years? Round your answers to two decimal places.

2. Calculate the price of a zero coupon bond that matures in 19 years if the market interest rate is 5.1 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Zero coupon bond price $

Reference no: EM132010503

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