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1) Consider a 10-year, annual coupon bond, selling for $947.12 today, with a face value of $1,000. Assuming a YTM of 6%, what is the

1) Consider a 10-year, annual coupon bond, selling for $947.12 today, with a face value of $1,000. Assuming a YTM of 6%, what is the coupon rate?

Now consider a 30-year, semi-annual coupon bond, selling for $675.84 today, with a face value of $1,000. Assuming a YTM of 9%, what is the coupon rate?

2) Consider now a company which pays an $0.80 dividend this year. They plan to increase this at a modest rate of 4% indefinitely. If my required rate of return is 9%, what should the share price be?

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