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1- A 20-year bond with a 5% annual coupon has a yield to maturity of 5%, what is the bond price in $? 2- Find
1- A 20-year bond with a 5% annual coupon has a yield to maturity of 5%, what is the bond price in $?
2- Find the price of the following stock today. It is expected to pay out a dividend of $0.25 per share in one year. The expected stock price in one year is $33 per share and investors' expected return (also known as cost of equity and equity cost of capital) is 7%.
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