What is current bond price

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Reference no: EM131844914

1. Staind, Inc., has 8 percent coupon bonds on the market that have 7 years left to maturity. The bonds make annual payments. If the YTM on these bonds is 10 percent, what is the current bond price?

$1,030.00

$857.50

$1,108.13

$947.76

$902.63

2. Thirsty Cactus Corp. just paid a dividend of $1.55 per share. The dividends are expected to grow at 30 percent for the next 7 years and then level off to a 8 percent growth rate indefinitely.

If the required return is 14 percent, what is the price of the stock today?

$87.17

$90.73

$88.95

$69.96

$.17

Reference no: EM131844914

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