What does the bond currently sell

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Q1. A given bond has 5 years to maturity. It has a face value of $1,000. It has  YTM of 6% and the coupons are paid semiannually at a 10% rate. What does the bond currently sell for? Show your work please.

Q2. A bond currently sells for $1,000 and has a par of $1,000. It was issued two years ago and had a maturity of 10 years. The coupon rate is 7% and the interest payments are made semiannually. What is its YTM? Show your work please.

Q3. A stock has just declared an annual dividend of $2.25 to be paid one year from today. The dividend is expected to grow at a 7% annual rate. The return on equity for similar stocks is 12%. What is P0? Show your work please.

Reference no: EM131581817

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