What is the price of bond with par value

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Reference no: EM131980499

1. Anderson Motors, Inc. has just set the company dividend policy at $0.65 per year. The company plans to be in business forever. What is the price of this stock if

a. an investor wants a return of 3%

b. an investor wants a return of 8%

c. an investor wants a return of 10%

d. an investor wants a return of 15%

e. an investor wants a return of 18%

2. What is the price of a bond with a par value of $1,000, an 8% coupon rate paid annually, and a yield to maturity of 6% if the bond matures in 8 years?

$1,124.20

$1,136.03

$1,147.20

$1,157.74

$1,167.68

Reference no: EM131980499

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