What is the bond anticipated return

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Problem a) A stock costs $900 and pays an annual $40 cash dividend. If you expect to sell the stock for $1,000 after five years, what is your anticipated return on the investment

Problem b) A $1,000 bond has a 4 percent coupon and currently sells for $900. The bond ma-tures after five years. What is the bond's anticipated return? Compare this return with the answer to part (a).

Reference no: EM132906656

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