Short term and long term effect on the whole economy

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1. Theta's 7% bonds were issued 10 years ago and currently trade for $985. These bonds mature in 8 years, but can be called away in 2 years at a 4% premium. Find the yield to maturity. Round intermediate steps and your final answer to four decimals and enter your final answer in decimal format (.XXXX).

2. The Federal Reserve Large Scale Assets Purchase has a short term and long term effect on the whole economy. Explain

3. Suppose you are considering buying shares of a stock to hold for one year. The stock has an expected annual dividend of $3.50 and an expected price at the end of the year of $30. If your required rate of return is 10%, what is the most that you should be willing to pay for the stock?

Reference no: EM131991743

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