What is the dividend growth rate on stock

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1. There is a zero coupon bond that sells for $398.72 and has a par value of $1,000. If the bond has 22 years to maturity, what is the yield to maturity? Assume semiannual compounding.

2. A bond with a coupon rate of 5.84 percent and semiannual coupon payments matures in 21 years. The YTM is 6.88 percent. What is the effective annual yield?

3. CDB stock is currently priced at $72. The company will pay a dividend of $4.25 next year and investors require a return of 10.4 percent on similar stocks.

Reference no: EM131997792

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