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1) 2) 3) The nominal rate of return is _% earned by an investor in a bond that was purchased for $987, has an annual
1) 2)3)
The nominal rate of return is _% earned by an investor in a bond that was purchased for $987, has an annual coupon of 3%, and was sold at the end of the year for $1015? Assume the face value of the bond is $1,000. You want to construct a portfolio containing equal amounts of U.S. Treasury bills, stock A, and stock B. If the beta of the stock A is 1.22 and the beta of the portfolio is 0.98, what does the beta of stock B have to be? Long Life Floors is expected to pay an annual dividend of $5 a share and plans on increasing future dividends by 3 percent annually. The discount rate is 10 percent. What will the value of this stock be 5 years from today (in $ dollars)? $Step by Step Solution
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