What interest rate are you being charged

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1. DT Motors paid its first annual dividend yesterday in the amount of $4.15 a share. The company plans to increase the dividend at a rate of 25 percent per year for the next 4 years. Thereafter, the dividend is expected to grow at 4 percent per year indefinitely. What is the amount of the dividend that is expected to be paid seven years from now (D7)? A. $9.48 B. $8.20 C. $11.40 D. $13.70

2. You borrow $140,000; the annual loan payments are $8,096.21 for 30 years. What interest rate are you being charged? Round your answer to two decimal places.

3. Consider two bonds A and B both with a coupon rate of 10.6 percent and a yield to maturity of 9.4 percent these are standard bonds with semiannual coupon payment. Bond A matures in 4 years while bond B matures in 10 years. What is the price of each bond.

Reference no: EM132006876

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