Required return for preferred stock-bond valuation

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Reference no: EM131246026

1. (Bond valuation) A $1,000 face value bond has a remaining maturity of 10 years and a required return of 9%. "The bond's coupon rate is 7.4%. What is the fair value of this bond?

2. (Required return for a preferred stock) Sony $4.50 preferred is selling for $65.50. The preferred dividend is nongrowing. What is the required return on Sony preferred stock?

Reference no: EM131246026

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