What the yield to maturity is close to

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Problem 1: A stock has an expected growth rate in the long-run for 15 percent and this common stock just paid a dividend of P2.00. If the investors required a 19 percent rate of return, what is the price of the stock?

Problem 2: Marlon Corp. bonds have a par value of P1,000 and a price of P865. The outstanding bonds has an annual 8 percent coupon rate. The bonds will mature in eleven years. The yield to maturity is close to? Use the interpolation method?

Reference no: EM132825320

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