What is dunder-mifflin corp pe ratio

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1. You wish to purchase a 6-year bond that has a face value of $1000 and makes semi-annual interest payments of $40. If you require a 10% yield to maturity on this investment, what is the maximum price you would pay for the bond?

a). $1,119.61

b). $988.19

c). $911.37

d). $1,046.80

2. Which of the following statements about duration is incorrect?

  • Duration measures a bond price's sensitivity to interest rate changes.
  • The duration of an ordinary coupon-paying bond must be less than or equal to the bond's maturity.
  • The duration of an ordinary coupon-paying bond will always be less than the duration of an ordinary zero-coupon bond of the same maturity.
  • Two bonds which have the same maturity must have the same duration

3. Dunder-Mifflin Corp. has a payout ratio of 40%, a required rate of return of 10%, and a growth rate of 6%.  What is Dunder-Mifflin Corp.'s P/E ratio?

Reference no: EM133204864

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