What is the annualized yield of the bond

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1. Assuming a dividend growth rate of 4%, a required rate of return of 8% and a payout ratio of 40%. What is the dividend yield of the stock?

2. You purchased a bond at par with an accrued interest of 1%. The coupon is 9% semi-annual payment with 5 years remaining maturity. What’s the annualized yield of the bond?

Reference no: EM131940381

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