What is the coupon rate on the bonds

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Reference no: EM131982950

1. Maxcorp’s bonds sell for $1,200.28. The bond life is 9 years, and the yield to maturity is 8.7%. What is the coupon rate on the bonds? (Assume a face value of $1,000 and annual coupon payments.)

2. Apocalyptica Corp. pays a constant $28 dividend on its stock. The company will maintain this dividend for the next 11 years and will then cease paying dividends forever. Required: If the required return on this stock is 11 percent, what is the current share price?

Reference no: EM131982950

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