Dividend is expected to grow at constant rate

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1. The price of a bond issued by Wal-Mart has is $985 today in the market. If this bond pays 6% coupon rate with payments made semi-annually and has 9 years to mature with par value of $1,000. What is the current yield to maturity on this bond?

2. If a stock's dividend is expected to grow at a constant rate of 6% a year, what would be the expected price of this stock in 1 year?

3. You have $3,000 in your bank account today. If your bank gives you 6% interest, compounded monthly, how much money you will have in your bank 10 years from now?

Reference no: EM131861740

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