What will one share of shidao common stock be worth ten year

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Reference no: EM131980900

1. A 10-year bond pays coupon semiannually and has a $1,000 face value. Its yield to maturity is 4% and the coupon rate is 5% per year. Please calculate the bond duration (measured by years) by using both (1) Duration function and (2) formula.?

2. Shidao Corp. is planning to pay an annual dividend of $2.08 a share on their common stock for the next period. The company adheres to a constant rate of growth dividend policy and offers a 4% growth rate in dividends. What will one share of Shidao common stock be worth ten years from now if the discount rate is 8 percent?

Reference no: EM131980900

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