What is effective annual expected rate of return for ruby

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Problem 1: Calculate the value of a bond that will mature in 8 years' time and has a $1000 face value. The coupon interest rate is 6% and the bond investors' required rate of return is 10%p.a.

Problem 2: Ruby's preference shares are selling for $121 and paying $3.50 in dividends per share each quarter. What is your effective annual expected rate of return if you purchase the shares at the market price?

Reference no: EM132964518

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