What is the price of irredeemable bond

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Reference no: EM132558194

a) Calculate the price of a preferred stock with a par value of €1,000 if it pays dividend rate of 8.1% and the market rate of return is 7.2%.

b) What is the price of irredeemable bond that pays coupon of $60, if the expected rate of return is 8.3%?

Reference no: EM132558194

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