Percent rate of return on similar investments

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(a) Grand Adventure properties offers a 9.5 percent coupon bond with annual payments. The yield to maturity is 11.2 percent and the maturity date is 11 years from today. What is the market price of this bond if the face value is RM 1,000?

(b) Oil Well Supply offers 7.5 percent coupon bonds with semiannual payments and a yield to maturity of 7.68 percent. The bonds mature in 6 years. What is the market price per bond if the face value is RM 1,000

(c) Crystal Glass recently paid RM 3.60 as an annual dividend. Future dividends are projected at RM3.80, Rm 4.10 and Rm 4.25 over the next 3 years, respectively. beginning 4 years from now, the dividend is expected to increase by 3.25 percent annually. What is one share of this stock worth to you if you require a 12.5 percent rate of return on similar investments?

Reference no: EM132608872

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