What is the bond nominal coupon interest rate

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1. O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal annual, not semiannual yield to maturity is 9.25%, they pay interest semiannually, and they sell at a price of $875. What is the bond's nominal coupon interest rate? a. 6.05% b. 6.37%.

2. Zeta Corp.'s stock just paid a $7, which is expected to grow at a 6% rate for the next two years before falling to a long-term growth rate of -5%. Find the value of the stock if investors require a 12% rate of return. Round intermediate steps to four decimals.

Reference no: EM131985783

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