What is the current price of the bonds

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Question 1) If D0 = $3.90, g (which is constant) = 3.5%, and P0 = $64, then what is the stock's expected dividend yield for the coming year?

Question 2) Dyl Inc.'s bonds currently sell for $880 and have a par value of $1,000. They pay a $70 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,120. What is their yield to maturity (YTM)?

Question 3) Malko Enterprises' bonds currently sell for $1,220. They have a 6-year maturity, an annual coupon of $80, and a par value of $1,000. What is their current yield?

Question 4) Grossnickle Corporation issued 20-year, noncallable, 7.2% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 5.2%. What is the current price of the bonds, given that they now have 19 years to maturity?

 

Reference no: EM133332106

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