Explain why bonds values change with maturity

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Reference no: EM132046530

1. Metroplex Corporation will pay a $2.70 per share dividend next year. The company pledges to increase its dividend by 4.20 percent per year indefinitely. If you require an 11.50 percent return on your investment, how much will you pay for the company's stock today?

2. Explain why bonds values change with maturity.

3. In 250 words or words, describe amoratization formula/calculations?

4. Explain why the duration of a zero coupon bond is equivalent to its maturity.

Reference no: EM132046530

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