Treasury note-what is the price of the bond

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Reference no: EM131966871

1. A Treasury note has 2.5 years left to maturity, a yield to maturity of 3.6 percent, and a coupon rate of 4.40 percent. What is the price of the bond?

2. A common stock pays an annual dividend per share of $2.10. The market capitalization rate (required return on equity) is 8.5%. If the annual dividend is expected to remain at $2.10, what is the value of the stock? Round your answer to two decimal places.

3. Kiss the Sky Enterprises has bonds on the market making annual payments, with 17 years to maturity, and selling for $820. At this price, the bonds yield 11.0 percent. What must the coupon rate be on the bonds?

Reference no: EM131966871

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