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1. A $1,000 face value zero coupon bond has a maturity of 15 years and a yield-to-maturity of 6%, what is the current price of
1. A $1,000 face value zero coupon bond has a maturity of 15 years and a yield-to-maturity of 6%, what is the current price of this bond? 2. You calculate that a stock has an implied required rate of return of 15%, a $2.00 current dividend (D0), and a 5% dividend growth rate. If the required rate of return increases to 16%, what will the percentage change in the stock price be?
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