Find the value of a bond maturing

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Reference no: EM132058740

1. What would be the stock price today if you know you will sell the stock in 2 years from today at $55 per share and you expect annual dividends $2 per share in year 1 and $3 per share in year 2, given the discount rate of 10%. please show step by step instructions.

2. Find the value of a bond maturing in 7 years, with a $1,000 par value and a coupon interest rate of 11% (5.5% paid semiannually) if they required return on similliar-risk bonds is 13# annual interest (6.5%% paid semiannually)?

Reference no: EM132058740

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