What must the coupon rate be on bonds

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Reference no: EM131985530

1. Kiss the Sky Enterprises has bonds on the market making annual payments, with 12 years to maturity, and selling for $900. At this price, the bonds yield 6.1 percent. What must the coupon rate be on the bonds?

2. Holtzman Clothiers's stock currently sells for $20 a share. It just paid a dividend of $2.5 a share (i.e., D0 = $2.5). The dividend is expected to grow at a constant rate of 8% a year. What stock price is expected 1 year from now? Round your answer to two decimal places. $ What is the required rate of return? Round your answer to two decimal places. Do not round your intermediate calculations. %

Reference no: EM131985530

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