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A 10-year corporate bond has a face value at the end of 10^th year of $2,000. It pays 12% per year interest. The interest payments (dividends) are collected once every 4 months.
a) What is the price of this bond today?
b) What is the value of each dividend?
c) If you decide to sell the bond after holding it for 7 years and collected all the interest payments (dividend) up to end of 7^th year, what is the value of bond at end of 7^th year?
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For several years, CSK Auto, Inc., fraudulently reported inflated earnings. During this period, Maynard Jenkins was a CEO. He was not involved in the fraud, however, and was never charged with a crime. Nonetheless, using a SOX provision, the SEC soug..
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What is it's component cost of capital?
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