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1. Explain the difference between the yield to maturity and the fixed coupon interest rate. 2. Explain why bond prices and market interest rates are

1. Explain the difference between the yield to maturity and the fixed coupon interest rate.

2. Explain why bond prices and market interest rates are inversely related.

3. Compare and contrast the following valuation methods of common stock:

a. dividend growth model b. balance sheet valuation models c. P/E model

4. Compare and contrast the discounted cash flow valuation model for common stock and bond valuation.

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